United Airlines, which is owned by�United Continental Holdings, Inc. (NYSE:UAL), is one of many companies hoping to successfully integrate social media in order to increase profits. Like many other large companies, they are learning the ways of social media via trial by fire.
While many companies could choose to ignore the impact of social media on their bottom lines until very recently, it is becoming increasingly imperative that companies integrate sites such as Twitter, Facebook (NASDAQ:FB), and YouTube, which is owned by Google (NASDAQ:GOOG), to their standard methods of marketing in order to be successful. Gregory Karp of the Chicago Tribune explains. Jacqueline Anderson , director of social media and text analytics at J.D. Power, explains,�”We’re at the point now where you need to have a social strategy that covers both aspects (service and marketing), because otherwise you’re going to be way behind the curve.”
NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!The airline industry, as a whole, performs poorly on the social media front despite the successes of some companies such as JetBlue Airways (NASDAQ:JBLU) and�Southwest Airlines (NYSE:LUV). Despite being the largest airline, United ranks last among major U.S. carriers when it comes to Twitter followers, coming in at 240,000 followers compared to the 1.5 million and 1.7 million followers of Southwest and JetBlue, respectively. That’s a lot of ground to make up for not recognizing the importance of social media early, especially with public relations disasters such as “Guitar-gate,” which may have resulted in the loss of $180 million according to Economist.
Top Information Technology Companies To Buy Right Now: Delta Air Lines Inc (DAL)
Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company�� route network gives it a presence in every domestic and international market. Delta�� route network is centered around the hub system it operate at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Each of these hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The Company�� network is supported by a fleet of aircraft that is varied in terms of size and capabilities.
Delta has bilateral and multilateral marketing alliances with foreign airlines to improve its access to international markets. These arrangements can include code-sharing, reciprocal frequent flyer program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, ticket office co-location, and other marketing agreements. Its international code-sharing agreements enable it to market and sell seats to an expanded number of international destinations. The Company has international codeshare arrangements with Aeromexico, Air France, Air Nigeria, Alitalia, Aeroflot, China Airlines, China Eastern, China Southern, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air, Olympic Air, Royal Air Maroc, VRG Linhas Aereas (operating as GOL), Vietnam Airlines, Virgin Australia and WestJet Airlines.
In addition to the Company�� marketing alliance agreements with individual foreign airlines, it is a member of the SkyTeam airline alliance. Delta also has frequent flyer and reciprocal lounge agreements with Hawaiian Airlines, and codesharing agreements with American Eagle Airlines (American Eagle) and Hawaiian Airlines. It has air service agreements with multiple do! mestic regional air carriers that feed traffic to its route system by serving passengers primarily in small-and medium-sized cities.
Through the Company�� regional carrier program, it has contractual arrangements with 10 regional carriers to operate regional jet and, in certain cases, turbo-prop aircraft using its DL designator code. In addition to Delta�� wholly owned subsidiary, Comair, it has contractual arrangements with ExpressJet Airlines, Inc. and SkyWest Airlines, Inc., both subsidiaries of SkyWest, Inc.; Chautauqua Airlines, Inc. and Shuttle America Corporation, both subsidiaries of Republic Airways Holdings, Inc.; Pinnacle Airlines, Inc. and Mesaba Aviation, Inc. (Mesaba), both subsidiaries of Pinnacle Airlines Corp. (Pinnacle); Compass Airlines, Inc. (Compass) and GoJet Airlines, LLC, both subsidiaries of Trans States Holdings, Inc. (Trans States), and American Eagle.
The Company�� SkyMiles program allows program members to earn mileage for travel awards by flying on Delta, Delta�� regional carriers and other participating airlines. Mileage credit may also be earned by using certain services offered by program participants, such as credit card companies, hotels and car rental agencies. In addition, individuals and companies may purchase mileage credits. The Company reserves the right to terminate the program with six months advance notice, and to change the program�� terms and conditions at any time without notice.
SkyMiles program mileage credits can be redeemed for air travel on Delta and participating airlines, for membership in the Company�� Delta Sky Clubs and for other program participant awards. Mileage credits are subject to certain transfer restrictions and travel awards are subject to capacity controlled seating. During the year ended December 31, 2011, program members redeemed more than 275 billion miles in the SkyMiles program for more than 12 million award redemptions. During 2011, 8.2% of revenue miles flown on Delta were from a! ward trav! el.
The Company generates cargo revenues in domestic and international markets through the use of cargo space on regularly scheduled passenger aircraft. Delta is a member of SkyTeam Cargo, an airline cargo alliance. SkyTeam Cargo offers a network spanning six continents and provides customers an international product line.
The Company has several other businesses arising from its airline operations, including aircraft maintenance, repair and overhaul (MRO); staffing services for third parties; vacation wholesale operations, and its private jet operations. Delta�� MRO operation, known as Delta TechOps, is an airline MRO in North America. In addition to providing maintenance and engineering support for its fleet of approximately 775 aircraft, Delta TechOps serves more than 150 aviation and airline customers. Its staffing services business, Delta Global Services, provides staffing services, professional security, training services and aviation solutions to approximately 150 customers. The Company�� vacation wholesale business, MLT Vacations, is the provider of vacation packages in the United States. Its private jet operations, Delta Private Jets, provides aircraft charters, aircraft management and programs allowing members to purchase flight time by the hour.
The Company competes with SkyTeam, United Air Lines, Continental Airlines, Lufthansa German Airlines, Air Canada, American Airlines, British Airways and Qantas.
Advisors' Opinion:- [By Adam Levine-Weinberg]
Growing profitably
JetBlue is already one of the largest carriers in the New York area, where it competes heavily with Delta Air Lines (NYSE: DAL ) , United Continental (NYSE: UAL ) , and AMR's American Airlines. However, the company has been diversifying its operations, and has become the largest carrier in Boston and San Juan. JetBlue's growth is primarily concentrated in those two markets now. - [By Ben Levisohn]
Delta Air Lines (DAL) has gained 133% so far this year, but that hasn’t stopped the folks at Barclays from putting it “at the top of [its] airlines list for 2014.”
Bloomberg NewsSure that gain is huge, both on its own terms and relative to its competitors. Delta has outgained nearly all its peers, as Southwest Airlines (LUV) has gained 82% in 2013, Alaska Air (ALK) has risen 68% and United Continental (UAL) is up 61%. Spirit Airlines (SAVE), with a 144% rise, was one of the few airlines to trump Delta.
So why is Barclays still bullish? David Fintzen and team explain why they left Delta’s investor meeting yesterday feeling optimistic:
The focus was rightfully on the ��ustainability��question that we think remains central to the long-term upside in DAL shares. Specifically, a long-term operating margin target of 10-12% was encouraging, but also strikes us as realistic given the initiatives (re-fleeting, etc) underway. Secondly, we were encouraged by comments that margin improvement can still come from the ��ore��of the network, not just the outliers. It�� hard for us to quantify, but setting a high threshold (i.e. not simply accepting an 8% margin) in a route/city/hub strikes us as a seemingly simple mindset change that matters (and needs to become engrained in the industry). On the cost side, similarly, multiple comments around ��estoring balance to the supply chain��strike us as similarly hard to quantify, but indicative of an expectation to push margins higher.
Delta has gained 1.9% to $28.19 today at 1:48 p.m., while United Continental has risen 3.4% to $37.83,�Spirit Airlines has advanced 2.2% to $43.32, and Southwest, which was upgraded by Merrill Lynch today, has jumped 3.6% to $18.62. Alaska Air has dropped 1.3% to $72.49.
- [By Molly McCluskey, The Motley Fool]
Michael Dwyer/AP WASHINGTON -- The Supreme Court indicated Tuesday it won't offer much help to frequent flyers who want to sue when airlines revoke their miles or their memberships. The justices heard the case of a Minnesota rabbi who was stripped of his top-level "platinum elite" status in Northwest's WorldPerks program because the airline said he complained too much. Rabbi S. Binyomin Ginsberg said Northwest, since absorbed by Delta Air Lines (DAL), didn't act in good faith when it cut him off. The airline says the federal deregulation of the airline industry in 1978 rules out most lawsuits like the one filed by Ginsberg. Most justices signaled they think that ruling for Ginsberg could give rise to state-by-state rules that the deregulation law was intended to prevent. Justice Stephen Breyer said Ginsberg's complaint also could apply to airline ticket prices, which are supposed to be set through competition among airlines. "It sounds to me like I go in to, you know, get a ticket, my reasonable expectation is they're not going to charge me what they're going to charge, you know. I mean, it's unbelievable," Breyer said. Under Ginsberg's view of the case, Breyer said he could sue over the prices. "That might be a great idea, but I don't think that's the idea behind this act," he said. Ginsberg said in court papers that he and his wife flew almost exclusively on Northwest, logging roughly 75 flights a year to travel across the U.S. and abroad to give lectures and take part in conferences on education and administration. He said he flew on Northwest even when other airlines offered comparable or better flights and in 2005, reached the highest level of the WorldPerks program. Northwest cut him off in 2008, shortly after Northwest and Delta agreed to merge. Ginsberg said the move was a cost-cutting measure designed to get rid of the high-mileage customers. Northwest says Ginsberg complained 24 times in a 7-month period, including nine instances of lugga
Best Airline Stocks To Own For 2014: Gol Linhas Aereas Inteligentes SA (GOL)
Gol Linhas Aereas Inteligentes S.A. (GoL) is a low-cost, low-fare airline in the world providing service on routes connecting all of Brazil�� cities and from Brazil to cities in South America and select touristic destinations in the Caribbean. As of March 31, 2010, GoL offered approximately 800 daily flights per day to 61 destinations connecting cities in Brazil, as well as destinations in Argentina, Bolivia, Curacao, Aruba, Chile, Colombia, Paraguay, Uruguay and Venezuela. GoL is a holding company, which owns directly or indirectly shares of five subsidiaries: VRG Linhas Aereas S.A. (VRG) and four offshore finance subsidiaries, Gol Finance Cayman and GAC Inc., which owns Sky Finance and Sky Finance II. VRG is the Company�� operating subsidiary, under which it conducts its business. Gol Finance, GAC Inc., Sky Finance and Sky Finance II are off-shore companies established for the purpose of facilitating cross-border general and aircraft financing transactions.
GoL�� passenger transportation services include ticketless travel; online sales, check-in, seat assignment and flight change and cancellation services; online flight status service; Web-enabled cell phone ticket sales and check-in; self check-in at kiosks at designated airports; designated female lavatories; friendly and efficient in-flight service; modern aircraft interiors; quick turnaround times at airport gates; free or discounted shuttle services between airports and drop-off zones on certain routes; buy on board services on certain flights; mobile check-in and boarding pass (100% paperless boarding), and iPhone application for check-in, electronic boarding pass and Smiles account management. On December 31, 2009, the Company had an operational fleet of 108 operational aircraft and a total fleet of 127. As of March 31, 2010, one of its Boeing 767 aircrafts was subleased to a charter company in the United States, one is under final formalization process for a wet lease to a Brazilian company for flights connecting Brazil to! Angola and three are under final stages of negotiation to be chartered to operate intercontinental flights. At December 31, 2009, GoL had a total of 127 aircraft, 94 of which were under operating leases and 33 were under finance leases.
The Company competes with TAM Linhas Aereas S.A.
Advisors' Opinion:- [By Jim Jubak]
One place to look for it this week has been in the ADRs, the New York traded ADRs, American Depository Receipts of GOL. One of the two big Brazilian airlines is the only one that is not owned by somebody else. The symbol is (GOL). It went up like 9.5% on October 21; it went up about 4.5% on October 22, pulled back a tiny little bit on October 23, but still a major, major move. This is basically on the effect of a weaker dollar versus the Brazilian real, since GOL is basically a domestic airline and almost all their revenue is denominated in real, which means that when the real gets cheap against the dollar, it hurts their revenue, especially because most of their costs, a lot of their costs, probably about 80% of their costs are denominated in dollars. A strong dollar means what they pay for oil, kerosene, jet fuel, what they pay for debt service, what they pay on airplane leases, all denominated in dollars, goes up, so GOL has been getting hammered on this. The reversal of this is a big deal for the stock.
- [By Jake L'Ecuyer]
Gol Linhas Aereas Inteligentes (NYSE: GOL) was down, falling 6.31 percent to $4.0850 after the company posted a loss in the third quarter.
Commodities
In commodity news, oil traded up 1.33 percent to $94.28, while gold traded up 0.28 percent to $1,274.70.
Best Airline Stocks To Own For 2014: Copa Holdings SA (CPA)
Copa Holdings, S.A. (Copa Holdings), incorporated on May 06, 1998, is a Latin American provider of airline passenger and cargo service through its two principal operating subsidiaries, Copa Airlines and Copa Colombia. Copa Airlines operates from its position in the Republic of Panama, and Copa Colombia provides service within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica, complemented with service within Colombia. As of December 31, 2012, the Company operated a fleet of 83 aircraft with an average age of 5.13 years; consisting of 57 modern Boeing 737-Next Generation aircraft and 26 Embraer 190 aircraft. . As of December 31, 2012, the Company offers approximately 334 daily scheduled flights among 64 destinations in 29 countries in North, Central and South America and the Caribbean, mainly from its Panama City Hub.
Copa provides passengers with access to flights to more than 150 other destinations through codeshare arrangements with UAL pursuant to which each airline places its name and flight designation code on the other�� flights. As of December 31, 2012, Copa had firm orders, including purchase and lease commitments, for 35 additional Boeing 737-Next Generation aircraft. Copa also has options for an additional 14 Boeing 737-Next Generation aircraft.
The Company competes with Avianca-Taca, American Airlines, Delta Air Lines, American Airlines and LAN Group.
Advisors' Opinion:- [By Will Ashworth]
I don�� know what�� going to happen in six months, let alone 20 years. However, I do know that OLED plays in a very exciting space, and Discovery Capital still seems to agree. Financially, OLED stock is solid, and if things go the company’s way in the coming years, it should get big in a hurry.
Best Stocks #3 (Midcap): Copa Holdings (CPA)
I�� a big believer in Latin America. While it has its troubles like every other emerging market, I continue to view its growing middle class with envy. While our middle class is being hallowed out, Latin America�� is growing exponentially. The U.S. was never more secure economically than when its middle class was growing, so history has demonstrated what this can do for a country.
- [By Michael J. Carr]
Copa Holdings (NYSE: CPA) is also undervalued with a PEG ratio of 0.53. Copa Holdings provides airline passenger and cargo services within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica.
- [By Arie Goren]
After running this screen on May 21, 2013, before the markets' open, I discovered the following eight stocks: Sunoco Logistics Partners LP (SXL), Leggett & Platt Inc (LEG), Copa Holdings SA (CPA), RPC Inc. (RES), Tupperware Brands Corp. (TUP), Herbalife Ltd. (HLF), John Wiley & Sons Inc. (JW.A) and C.H. Robinson Worldwide Inc. (CHRW).
- [By Jayson Derrick]
Analysts at JPMorgan maintained an Overweight rating on Copa Holdings (NYSE: CPA) with a price target raised to $168 from a previous $163. Shares lost 0.25 percent, closing at $125.38.
Best Airline Stocks To Own For 2014: Grupo Aeromexico SAB de CV (AEROMEX*)
Grupo Aeromexico SAB de CV is a Mexican holding company primarily engaged in the provision of passenger and cargo air transport services. It offers destinations in Mexico, the United States, Europe, Central and South America, Asia and Canada. It operates a fleet of over 110 aircrafts. The Company is primarily engaged in the passenger transportation segment, comprising regional, domestic and international routes, and package holidays; as well as in cargo transportation segment, handled mainly by its subsidiary Aeromexico Cargo. By its subsidiaries the Company is also engaged in real estate sector and in providing services to the aviation companies, including personnel training, management, and aircraft maintenance and modification. Its subsidiaries include Aerovias de Mexico SA de CV, Premier Loyalty & Marketing SAPI de CV, and Inmobiliaria Avenida Fuerza Aerea Mexicana 416 SA de CV, among others. In addition, it is a member of the SkyTeam airline alliance. Advisors' Opinion:- [By Jonathan Levin]
Volaris became Mexico�� second publicly traded carrier, after larger competitor Grupo Aeromexico SAB (AEROMEX*) sold stock in 2011. Airlines in Mexico have expanded into a void left when Cia. Mexicana de Aviacion, then largest based on passenger traffic, sought protection from creditors and ceased operations in 2010.
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