• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Zacks Analyst Interview Highlights: Frontier Airlines, United Airlines, ExpressJet and Pinnacle Airlines

Posted on: Friday, 2 March 2007, 10:29 CST

Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst Ann Heffron, who discusses Frontier Airlines (Nasdaq: FRNT), United Airlines (Nasdaq: UAUA), ExpressJet Holdings (NYSE: XJT) and Pinnacle Airlines (Nasdaq: PNCL).

A synopsis of today's Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678.

With Q4 earnings nearly over, did the airline industry meet your expectations overall?

Of the companies I cover, two came in about as expected, while the other two were worse than expected. In the cases of Frontier Airlines (Nasdaq: FRNT) and United Airlines (Nasdaq: UAUA), this was primarily due to snow storms that shut down operations in key markets for a few days. Although ExpressJet Holdings (NYSE: XJT) and Pinnacle Airlines (Nasdaq: PNCL) earnings were generally spot on, the real news for these companies is that major uncertainties have been resolved.

In December, PNCL announced an amended agreement with Northwest Airlines (or NWA), effective January 1, 2007, which calls for : (1) a reduction in the target margin to 8.0% from 10.0%, with these rates to remain in effect (subject to annual inflation adjustments) until 2013 when the rates can be reset; (2) Northwest to provide fuel to PNCL at no charge to PNCL, and fuel to be removed as a revenue and expense item from PNCL's income statement; and (3) the amount PNCL pays to NWA for subleasing aircraft will be significantly reduced. These changes are expected to reduce operating income by about $10 million per quarter.

In addition, the agreement provides that PNCL will continue to be a long-term partner with Northwest through December 31, 2017, removes all restrictions regarding PNCL's ability to provide airline services to other major airlines, places conditions upon further changes to PNCL's fleet under varying circumstances, and provides a $377.5 million unsecured claim for PNCL against Northwest in Northwest's bankruptcy proceedings. This agreement is subject to approval by the court overseeing Northwest's bankruptcy.

Read the full interview at http://at.zacks.com/?id=2647.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2679.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=2648.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

(a)The Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect the reinvestment of dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money.

(b)The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs, and represents the gross returns before management fees.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Source: Business Wire

More News in this Category