There are a lot of reasons why Delta Air Lines (NYSE: DAL ) has been earning more money than any other airline in the world. For example, recent cost containment initiatives have helped Delta turn its revenue gains directly into profit growth.
Delta Air Lines has become incredibly reliable -- and profitable -- in the last few years. Source: The Motley Fool
However, for any global network carrier today, keeping business travelers coming back is critical to long-term success. One way to ensure that happens is to reliably deliver good service. Delta does just that -- and trounces other major carriers like American Airlines (NASDAQ: AAL ) , United Continental (NYSE: UAL ) , and even Southwest Airlines (NYSE: LUV ) in terms of service quality.
Consistently good operations
Earlier this week, researchers at Wichita State University and Embry-Riddle Aeronautical University published the annual Airline Quality Rating report. The study measures airline quality through four measures that every airline must report to the Department of Transportation: on-time performance, mishandled baggage, involuntary denied boardings, and official customer complaints.
Hot Information Technology Stocks For 2015: Air France KLM SA (AFLYY.PK)
Air France-KLM SA (Air France-KLM), incorporated on April 23, 1947, is an airline engaged in the business of passenger transportation. It has four segments: Passenger, Cargo, Maintenance and Other. The Company�� primary business is to hold direct or indirect interests in the capital of air transport companies and, more generally, in any companies in France or elsewhere whose purpose is related to the air transport business. Air France-KLM activities also include cargo, aeronautics maintenance and other air-transport related activities including, principally, catering and charter services. At March 31, 2011, the Air France-KLM group fleet consists of 609 aircraft, of which 593 were operational. At March 31, 2011, 274 aircraft were fully owned (45% of the fleet), 117 aircraft were under finance lease representing 19% of the fleet and 218 under operating lease representing 36% of the fleet.
Passenger
Passenger operating revenues primarily come from passenger transportation services on scheduled flights with the Company�� airline code, including flights operated by other airlines under code-sharing agreements. They also include commissions paid by SkyTeam alliance partners, code-sharing revenues, revenues from excess baggage and airport services supplied by the Company�� to third party airlines and services linked to information technology (IT) systems.
Cargo
Cargo operating revenues come from freight transport on flights under the companies��codes, including flights operated by other partner airlines under code-sharing agreements. Other cargo revenues are derived principally from sales of cargo capacity to third parties. During the fiscal year ended March 31, 2011, the Company transported more than 1.5 million tons of cargo, of which 66% in the bellies of passenger aircraft and 33% in the cargo fleet, to a network of approximately 254 destinations in approximately 111 countries. Air France-KLM Cargo has a product range organized around four prod! uct families, Equation, Cohesion, Variation and Dimension.
Maintenance
Maintenance operating revenues are generated through maintenance services provided to other airlines and customers globally. The Company�� two engine shops are located in Amsterdam and Paris. CFM56 engine shops support the fleet of CFM56-5 power plants in the world, with nearly 400 engines operated by numerous airlines. CF6-80E1 provides full-service maintenance. KLM Engineering & Maintenance (AFI KLM E&M) provides an alternative to the manufacturer�� services in terms of overhaul and services on this engine with its offering supported by technological infrastructure.
Other
The revenues from this segment come primarily from catering supplied by the Company to third-party airlines and to charter flights operated primarily by Transavia. The catering business is regrouped around Servair, an Air France subsidiary which generates more than 90% of the revenues of this activity, and KLM Catering Services, a subsidiary of KLM.
Advisors' Opinion:- [By El Torero]
The airline will undoubtedly pounce on the likely failings of rival companies, though this is also an area where easyJet will be eager to move in. Spanair is gone as is Malev Zrt, two former Ryanair rivals. Air France-KLM (AFLYY.PK) and Iberia are in trouble, among other European airlines. Ryanair will take advantage of such weaknesses in its aim of becoming Europe's out-and-out dominant short-haul carrier. As other airlines cut routes, airports are now looking to Ryanair to take up the newly available airport space. As a result of this, with "opportunities opening up in Germany, Scandinavia and Central Europe" in particular, Ryanair's deputy chief executive, Howard Millar sees the Irish company increase its market share from 15 percent to 20 percent before the end of the decade.
Top Airline Companies To Invest In Right Now: ANA Holdings Inc (ALNPF)
ANA HOLDINGS INC., formerly All Nippon Airways Co., Ltd., is a Japan-based airline holding company. Its Air Transportation segment is engaged in the air transportation business, the provision of various services at airports, the provision of reservation services via telephone, the freight express business, and the maintenance of aircrafts in domestic and overseas markets. The Traveling segment plans and sells tour packages under the brand names ANA Hello Tour and ANA Sky Holiday, it also offers services to travelers at arrival areas and sells travel products and air tickets. The Others segment involves in the information communication, trading and merchandise business, building management, logistics and airplane fixture repair business, and hotel operation. On March 4 and March 5, 2013, it fully acquired all shares of one and two consolidated subsidiaries through stock swap, respectively, made them become wholly-owned subsidiaries. Advisors' Opinion:- [By Daniel Inman]
In Tokyo, ANA Holdings (JP:9202) � (ALNPF) �declined 4.7% after the airline lowered its 2013 fiscal-year net profit forecast by 65% on higher fuel costs and slow service expansion because of delays in Boeing (BA) �787 Dreamliner deliveries.
Top Airline Companies To Invest In Right Now: Global Eagle Entertainment Inc (ENT)
Global Eagle Entertainment Inc., formerly Global Eagle Acquisition Corp., incorporated on February 2, 2011, is the full service platform offering both content and connectivity for the worldwide airline industry. Through its combined content, distribution and technology platforms, the Company provides airlines and the millions of travelers they serve with the offering of in-flight video content, e-commerce and information services. Through its Row 44 subsidiary, the Company utilizes Ku-band satellite technology to provide airline passengers with Internet access, live television, shopping and travel-related information. As of February 1, 2013, the Company installed on more than 450 aircraft, Row 44 has the fleet of connected entertainment platforms operating over land and sea globally. In addition, through its AIA division, the Company provides film and television content, games and applications to more than 130 airlines worldwide. In July 2013, the Company announced the acquisition of Post Modern Group, LLC. In October 2013, Global Eagle Entertainment Inc announced that it has acquired Travel Entertainment Group Equity Limited, the United Kingdom-based parent company of IFE Services Limited (IFE Services) from GCP Capital Partners LLP.
The Company�� Row 44 subsidiary provides satellite-based broadband service to the global airline industry. The Company�� Advanced Inflight Alliance (AIA) business is the provider of content services, products and solutions for the global inflight entertainment market. AIA also serves as the exclusive representative in sourcing Hollywood content for 60 airline customers and is the exclusive distributor of content from select Hollywood studios and independent producers to the airline market. In addition, AIA is the airline distributor of Asian, Bollywood, European, Latin American and Middle Eastern content.
Advisors' Opinion:- [By Richard Stavros]
This was particularly the view of Leo Denault, CEO of Entergy Corp (NYSE: ENT). Mr. Denault and his fellow panelist, James Robo, CEO of NextEra Energy Inc (NYSE: NEE), offered rather refreshing perspectives on the industry’s challenges, as they are pursuing strategies that are directionally opposed.
- [By Garrett Cook]
Shares of Global Eagle Entertainment (NASDAQ: ENT) got a boost, shooting up 10.38 percent to $12.12 after the company and Boeing (NYSE: BA) announced a satellite connectivity partnership.
- [By Steve Symington]
What:�Shares of Global Eagle Entertainment� (NASDAQ: ENT ) �rose 12% early Friday, then settled close up around 7% after the in-flight content and connectivity specialist released solid first-quarter results.
Top Airline Companies To Invest In Right Now: 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. - [By Jon C. Ogg]
Gol Linhas A茅reas Inteligentes S.A. (NYSE: GOL) is a Brazilian airline carrier, as well as a mail and cargo carrier. At $4.65, the 52-week trading range is $2.74 to $7.67.
Top Airline Companies To Invest In Right Now: Indonesia Transport & Infrastructure Tbk PT (IATA)
PT Indonesia Transport & Infrastructure Tbk, formerly PT Indonesia Air Transport Tbk, is an Indonesia-based air transport service provider. The Company provides air transportation, hiring and/or leasing aircrafts, repairs and maintenance of aircrafts and trading of aviation technical equipment and related spare parts. It also provides medical evacuation services, tourism and scheduled flight services to several routes in central and eastern Indonesia. The Company operates various types of fixed wing aircrafts and helicopters, such as EC 155 B1, AS 365 Dauphin N2 twin turbine helicopter, Beechcraft 1900D, ATR 42-300, ATR 42-500 and Fokker 50. Advisors' Opinion:- [By Shereen El Gazzar]
The forecast, from the International Air Transport Association (IATA), sees the Middle East and the Asia-Pacific region with the strongest international passenger growth, with a compound average growth rate of 6.3% and 5.7% respectively.
Top Airline Companies To Invest In 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 Ben Levisohn]
As a result, shares of American Airlines has dropped 1.2% to $36.11 at 1:54 p.m. today, while United Continental Holdings (UAL) has fallen 2.1% to $44.27 and Delta Air Lines (DAL) is off 1.8% at $33.05.
- [By Ben Levisohn]
We believe both�United Continental and JetBlue have fleet inefficiencies that contribute to poor margins for both airlines. If�United Continental acquired JetBlue�� 60 E-190s (and the 24 on order), in a transaction like the one Delta Air Lines (DAL) and�Southwest Airlines (LUV) announced in 2012 when Southwest Airlines agreed to sublease its 88 B717s to Delta Air Lines, we believe both companies would benefit. This would also represent no incremental capacity to United Continental, by our math…
- [By Alexis Xydias]
Molex Inc. jumped 32 percent after agreeing to be acquired by Koch Industries Inc. Apple Inc. rose 1.6 percent before an investor event tomorrow where the company will unveil new iPhone models. A Standard & Poor�� index of homebuilders jumped 5.5 percent, the most in almost two months. Delta Air Lines Inc. (DAL) rallied 9.4 percent as the world�� second-largest carrier will replace BMC Software Inc. in the S&P 500.
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