UAL Corporation (UAUA), the parent company of United Airlines, has announced the issue of $810 million notes to pay off existing debt. The $810 million in pass-through securities raised consists of $697 million of Class A certificates with a coupon interest rate of 9.75% expiring in Jan. 2017 and $113 million of Class B certificates with an interest rate of 12.0% expiring in Jan. 2016. A pass-through security is a fixed-income certificate against certain mortgage-backed securities, generally aircraft. Of the total proceeds raised from the offering, $493 million will be used to pay off equipment trust certificates issued from 2000 to 2002, while the remaining of the funds will be used for general corporate purposes. J.P. Morgan (JPM), Morgan Stanley & Co. (MS), Goldman Sachs & Co. (GS) are acting as joint book-running managers for the issue. In addition to the drop-off in ...

In the third quarter, Southwest Airlines Co. (LUV) is expected to post narrow losses. The Zacks Consensus Estimate for Southwest is a loss of 4 cents per share. Southwest may see a drain in its profits from non-cash charges in its fuel hedging program. As of June 30, 2009, the company had fuel derivative instruments in place for approximately 30% of its expected third quarter 2009 jet fuel consumption. Though revenue remains a problem for the airline, it is trying to entice the passengers with cheaper prices. More traffic and less capacity or available seats led to a rise in average occupancy for Southwest in September. Load factor jumped to 74.7%, a gain of more than 11% from Sept. 2008. These full loads were built with cheap fares and other promotions which the airline has been offering of late. There have been signs that demand ...

Yesterday, United Airlines, a wholly owned subsidiary of UAL Corp. (UAUA) announced preliminary mainline traffic results for September. The company reported mainline passenger load factor of 81.2%. Total scheduled mainline revenue passenger miles (RPMs) decreased 1.1% on a capacity decrease of 3.7% in scheduled mainline available seat miles (ASMs) compared with the same period in 2008.   The airline has been threatened by volatile oil prices, increased competition, increasing maintenance expenses and a disgruntled workforce. During the second quarter, the company initiated a fleet modernization review to replace its older fleet types. This process could present a unique opportunity for the company to improve its cost structure and fleet strategy.   United Airlines is taking appropriate actions to respond to the current economic environment as indicated by its significant capacity reductions. However, consolidated passenger revenue per ASM was also down 1.1% and 3.7% during September.   In order ...

UAL Corp. (UAL), the parent company of United Airlines, has announced a new public offering of $19 million common stock and $175 million convertible senior notes due 2029. The issue has been made in an attempt to raise cash for operations for the coming winter season when demand for air travel remains subdued. The company is bolstering its liquidity by taking advantage of the sentiment that fundamentals in airline industry have improved. In the public offering, UAL Corp. intends to grant its underwriters an option to acquire an added 2.85 million shares. The company has given the underwriters an option of nearly $26.3 million in additional convertible senior notes. Proceeds from the stock and debt offers would be used for general purposes. J.P. Morgan  (JPM) Morgan Stanley (MS) and Goldman Sachs & Co. (GS) are acting as joint book-running managers of both offerings....

This Top-Performing Industry May Surprise You

Try this one out on your family and friends: ask them to name one of the top three best-performing industries of the past three months. You’ll likely get an assortment of answers, but we bet major airlines won’t feature in there too often.

But it’s true. The industry comes in at #3 over the past three months, with carriers like AMR Corp (NYSE: AMR), UAL Corp (NYSE: UAUA) and US Airways (NYSE: LCC) all racking up huge gains.

This is a far cry from the airlines’ “winter of discontent” in early 2009, as demand evaporated and credit froze up, extending the worst downturn in the industry’s history.

But new research from Morningstar shows that even the most battered of industries can still produce gains for investors. The firm tracked 10 funds with

...

Recently, major Mexican airlines companies reported a decrease in passenger traffic for the month of June.

Grupo Aeroportuario del Pacifico S.A.B. de C.V. (PAC) announced a 20.1% decline in total terminal passengers year-over-year, comprised of 17.5% decrease in domestic passengers and 25.4% drop in international passengers.

Grupo Aeroportuario del Sureste S.A.B. de C.V. (ASR) announced a fall of 28.4%, with 17.6% in the domestic sector and 36.7% in the international sector.

Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB) reported a decrease of 20.5% in total passenger traffic, with domestic traffic down 18.4% and international traffic tumbling 32.3%.

Passenger traffic decreased not only in June, but throughout the second quarter of 2009. PAC’s passenger traffic was down 36.6% in May and 10.4% in April. ASR’s passenger traffic dropped 50.7% in May and 2.1% in April. OMAB reported a fall of 39.7% in May and 17.7%

...

NetScout Systems, Inc. (

...

Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

Aaron Rents Inc (RNT) ADA-ES Inc (ADES) Ajinomoto Co Inc (AJINY) Alleghany Corp (Y) Apollo Group Inc (APOL) Atmos Energy Corp (ATO) Bio-Imaging Technologies Inc (BITI) Calumet Specialty Products Partners LP (CLMT) CARBO Ceramics Inc (CRR) Care Investment Trust Inc (CRE) Cell Therapeutics Inc (CTIC) China Agritech Inc (CAGC) China Information Security Tech Inc (CPBY) Church & Dwight Co Inc (CHD) CTI Industries Corp (CTIB) DXP Enterprises Inc (DXPE) ev3 Inc (EVVV) Hellenic Telecom Organization SA (OTE) ICT Group Inc (ICTG) Ikanos Communications Inc (IKAN) Integra LifeSciences Holdings Corp (IART) James Hardie Industries NV (JHX) La Jolla Pharmaceutical Co (LJPC) Labopharm Inc (DDSS) Lincoln Educational Services Corp (LINC) Macrovision Solutions ...

With oil trading so low, just about any of the airline stocks could be a great bounce play and the Masters favorite, JetBlue Airways (NASDAQ:JBLU).  JBLU shares are up 6% today and once we get some calm back in the ...

Delta Air Lines, Inc. (DAL) shares took off by 3.81% on Monday morning and touched $8.44, within touching distance of its 52-week high of $8.49. The bump up came on the heels of the airline’s announcement that four proxy advisors have recommended the merger with Northwest Airlines Corp. (NWA). The latter went up by 2.1% to $10.06.

On a day when the financial stocks were pummeled, Monday is proving to be a good day for the aviation sector. Reacting positively to the news of crude oil prices reaching a seven-month low of $96, airline shares have gained traction. UBS has upgraded Delta from Hold to Buy. While AMR Corp. (AMR) rose $1.09, or 10.4%, to $11.48, Continental Airlines Inc. (CAL) added $1.71, and touched $20.66. UAL Corp. (UAUA), which had tanked last week, rose 10.3% to $12.53.

"DAL" Free Stock Analysis: Buy? Sell? ...