Delta Air Lines Beats on Q3 Earnings, Gets Analyst Upgrades

Delta Air Lines reported Q3 earnings of $1.57 versus the $1.53 estimate. Revenue also beat coming in at $11.06 billion versus the $11.03 billion estimate.
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CAE Awarded Contracts by UAEAF Valued At C$145 Million

June 15, 2016: CAE was awarded contracts by the United Arab Emirates Armed Forces valued at approximately C$145 million. The company announced it has been awarded contracts by the General Headquarters (GHQ) of the United Arab Emirates (UAE) Armed Forces valued at approximately C$145 million. The contracts are for CAE to design and develop a comprehensive Naval Training Centre (NTC) for the UAE Navy and to provide the UAE Joint Aviation Command (JAC) with a suite of helicopter simulators and training devices for the NorthStar Aviation 407 Multi-Role Helicopter (407MRH) as well as the Sikorsky UH-60M Armed Black Hawk (ABH).

CAE was awarded contracts by the General Headquarters (GHQ) of the United Arab Emirates (UAE) Armed Forces to design and develop a comprehensive Naval Training Centre (NTC) for the UAE Navy. The value of the initial contract for Phase A is included in the C$145 million total mentioned above. With potential phases, the UAE NTC program could be worth approximately C$450 million over the next 15 years. The UAE Naval Training Centre will be located in Taweelah with connectivity to several other naval and air bases throughout the UAE. The UAE NTC is expected to be complete and ready-for-training by early 2019.

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April 12, 2016: CAE awarded commercial aviation training contracts worth more than C$200 million. CAE announced today a series of training solutions contracts, including the sale of 14 full-flight simulators (FFS) to airlines and aircraft operators worldwide including Southwest Airlines and Uzbekistan Airlines. These agreements, valued at more than C$200 million, cover a broad range of CAE’s training solutions, from the delivery of innovative training equipment to commercial pilot training programs.

CAE concludes its fiscal year 2016, which ended March 31, 2016, with a total of 53 FFS sold, a new benchmark for the industry. The FFSs are at list prices, which include the value of OEM aircraft-specific data, parts and equipment. In the case of these contracts, some customers are providing part of the OEM content.

– Five Boeing 737 full-flight simulators to Southwest Airlines in North America
– One Boeing 767 full-flight simulator to Uzbekistan Airlines in Asia
– One Boeing 737NG full-flight simulator to Avenger Flight Group in North America
– One A320 full-flight simulator to Sofia Flight Training in Eastern Europe
– Six full-flight simulators, including one Boeing 737NG, one Boeing 787, three A320s, and one MD11F to undisclosed airlines and aircraft operators in North America

December 21, 2015: CAE was awarded a commercial aviation training solution contracts valued at more than C$100 million. CAE announced a series of training solution contracts valued at more than C$100 million with five airlines. The diversity of these agreements highlights the span of CAE’s full range of training programs that cover the entire career life cycle of professional pilots and CAE’s leadership in developing training equipment solutions for next generation aircraft types. They include:

From cadet to captain training:
– A cadet training program extension to create additional pilots for China’s Shenzhen Airlines
– The extension of a long-term exclusive agreement for pilot training for Spring Airlines in Japan
– An exclusive training agreement for pilot training with an undisclosed customer in Europe

Training equipment, including the sale of three A350 full-flight simulators (FFS) and one Boeing 787 FFS:
– One A350 full-flight simulator and one A350 Airbus Pilot Transition (ATP) Trainer to the Airbus Asian Training Centre
– Two A350 and one Boeing 787 full-flight simulators, as well as one A350 flight training device to undisclosed customers in North America

CAE Inc. (CAE Updated Trend Analysis) designs, manufactures, and supplies simulation equipment worldwide.

Caeams1 published this video about CAE’s flight simulators:

Air Lease Sells 25 Embraer Aircraft to Nordic Aviation Capital

June 06, 2016: Air Lease announces the sale of 25 Embraer aircraft to Nordic Aviation Capital. Announced an agreement to sell 25 of its Embraer E190 and E175 aircraft in its fleet to…

June 06, 2016: Air Lease announces the sale of 25 Embraer aircraft to Nordic Aviation Capital. Announced an agreement to sell 25 of its Embraer E190 and E175 aircraft in its fleet to Nordic Aviation Capital A/S (NAC). These Embraer aircraft have served ALCs customers well, fulfilling regional passenger traffic demand. Over the past six years, ALCs business has matured and has focused on mainline jet aircraft operations for its airline customers. NAC is a global leader specializing in meeting the needs of regional aircraft operators and this transaction adds further scale to its business. These 25 Embraer aircraft account for less than 10% of ALCs current fleet. Transfers of these aircraft to NAC will begin this quarter and are expected to conclude in Q1 of 2017. As the aircraft are moved, ALC expects to use some of this capital to add incremental aircraft acquisitions as market conditions permit.

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May 23, 2016: Air Lease Corporation has received three buy ratings in the last week. The analysts with Buy ratings are: Rajeev Lalwani of Morgan Stanley, Christopher Nolan of FBR Capital, and Moshe Orenbuch of Credit Suisse. There have been a total of 7 Buy ratings on the stock in the last 6 months with no Sell ratings.

Most notable analyst with a Buy rating is Helane Becker of Cowen & Co. Helane Becker has an incredible win ratio of 70%, with an eye-popping average gain of +23.4%.

May 17, 2016: Air Lease announced today the placement of two new Boeing 787-9s on long-term lease to Oman Air. The aircraft are scheduled to deliver in 2018 and 2020, both from ALCs order book with Boeing. This new agreement follows Oman Airs August 2015 announcement of lease agreements covering 14 additional jet aircraft on lease from ALC, including three new Boeing 737-800s, seven new Boeing 737-8MAXs, one new Boeing 787-9, one used Boeing 737-700 and two used Boeing 737-800 aircraft.

May 12, 2016: Air Lease delivers first of two new Airbus A320-200 aircraft to Frontier Airlines. Air Lease Corporation announced the delivery of one new Airbus A320-200 to Frontier Airlines, the first of two new Airbus A320-200 aircraft deliveries on long-term lease from ALCs order book with Airbus. The second A320-200 is scheduled to deliver in fall 2016.

Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet transport aircraft to airlines in Asia, the Pacific Rim, Latin America, the Middle East, Europe, Africa, and North America. Air Lease Corporation is a leading aircraft leasing company based in Los Angeles, California that has airline customers throughout the world.

Volaris Continues To Report Excellent Growth

June 06, 2016: Volaris Aviation Holding continues to report excellent growth with its May release. The May load factor came in at 86% versus 83.7% year over year. Traffic was up +27.1% year over year.

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April 06, 2016: Volaris Aviation Holding reports March 2016 load factor at 85.4% versus 81.2% year over year. Traffic was big at +36.3% year over year.

February 04, 2016: Volaris Aviation Holding reports explosive growth in January of 2016. The January load factor was 85.9% versus 80.1% year over year. Traffic was up an incredible +31% year over year.

January 17, 2016: Motley Fool says Volaris is well positioned to benefit from the rising Mexican air-travel boom. Motley Fool notes that in Mexico, domestic airline passenger traffic has posted double-digit year-over-year growth every month since February. International passenger traffic to Mexico has also risen at a consistent double-digit rate since April. Motley Fool says Volaris has the lowest costs of any airline in the Western Hemisphere and is positioned to capture a large share of the growth in leisure travel. Full Article here: http://www.fool.com/investing/general/2016/01/17/2-ways-to-invest-in-rising-mexican-air-travel.aspx

January 7, 2016: During December 2015, Volaris increased total capacity, as measured in Available Seat Miles (ASMs), by 18.2% year over year, in response to strong demand in its domestic and international markets. Total demand for December, as measured in Revenue Passenger Miles (RPMs), increased 23.2% year over year, reaching 1.2 billion. Volaris transported a total of 1.2 million passengers during the month, an increase of 22.2% year over year. Full year 2015, Volaris transported 12 million passengers, an increase of 22.2% year over year.

In December 2015, Volaris increased domestic and international ASMs by 17.5% and 19.6%, respectively. Network load factor for December reached 85.6%, an increase of 3.5 percentage points year over year.

During December 2015, Volaris launched one year-round international route (Durango – Chicago/Midway).

November 15, 2015: Controladora Vuela Compania de Aviacion (VLRS Updated Trend Analysis) Fool article explains that secondary stock offerings are genuinely bad news for investors as it issues shares and dilutes current investors shares and it’s usually a sign that a company doesn’t have adequate liquidity. However, Volaris isn’t selling any stock in this secondary offering. Instead, two of Volaris’ main pre-IPO investors, a private equity fund and an investment fund run by El Salvadoran airline executive Roberto Priete, are selling a combined 10%-11% of the company’s shares. Source: http://www.fool.com/investing/general/2015/11/15/volaris-same-great-airline-stock-now-cheaper.aspx?source=guerillastocktrading&utm_source=yahoo&utm_medium=feed&utm_campaign=article

October 15, 2015: Volaris Aviation Holding Navellier makes positive comments, named new Buy below $17 (timing uncertain).

July 27, 2015: Volaris Aviation Holding Reports Q2 $0.22 v $0.24e, R$263M v $275Me
Adj EBITDAR margin 31.2% v 18.0% y/y
RASM 3.4% y/y
TRASM 8.7% y/y
CASM -3.3% y/y

Controladora Vuela Compania de Aviacion (VLRS Updated Trend Analysis) also known as Volaris, provides air transportation services for passengers, cargo, and mail in Mexico and internationally. It also offers charter flight services. As of March 31, 2014, the company operated in approximately 100 routes with a fleet of 46 aircraft consisting of 19 Airbus A319 and 27 aircraft A320. It also operates approximately 200 daily flights on routes that connect 33 cities in Mexico and 13 cities in the United States. The company was founded in 2003 and is headquartered in Mexico City, Mexico.