SOURCE: Five Star Equities

Five Star Equities

May 28, 2012 08:20 ET

Southwest Airlines and Delta Air Lines Look to Benefit From Lower Fuel Costs Prior to Peak Flying Season

Five Star Equities Provides Stock Research on Southwest Airlines and Delta Air Lines

NEW YORK, NY--(Marketwire - May 28, 2012) - Airline stocks posted some impressive gains recently. The Bloomberg U.S. Airlines Index (BUSAIRL) of 10 carriers on Thursday jumped as high 6 percent, the largest gain since Jan. 25. During the first quarter, historically the slowest of the year, collectively the top seven U.S. airlines have posted an operating profit of $247 million compared with a moderate loss a year ago according to data collected by the Deutsche Bank. Five Star Equities examines the outlook for companies in the Airlines Industry and provides equity research on Southwest Airlines Co. (NYSE: LUV) and Delta Air Lines, Inc. (NYSE: DAL).

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The high price of fuel has always been one of the biggest costs for airline companies. The commodities market has provided a timely windfall for the industry as they are just about to enter their peak summer travel season. Jamie Baker, JPMorgan Chase airline analyst, has recently stated that since February fuel costs have dropped by $0.40 per gallon, amounting to a $5.5 billion savings for the industry. Airlines for America's predict a record number of passengers to fly internationally this summer. Total passengers on international flights are forecasted to total 26.8 million, beating last summer's record of 26.3 million according to the group.

Five Star Equities releases regular market updates on the Airlines Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Southwest Airlines' Gary C. Kelly, Chairman of the Board, President, and CEO, recently stated: "I am pleased to announce the Board's decision today to increase the quarterly dividend to $.01 per share from $.0045 per share. The Board also increased the Company's previous $500 million share repurchase authorization to $1 billion. Both actions reflect the Board's confidence in Southwest Airlines and its ongoing commitment to enhance Shareholder value."

Delta Air Lines wholly-owned subsidiary, Monroe Energy LLC, has reached agreement with Phillips 66 to acquire the Trainer refinery complex south of Philadelphia. As part of the transaction, Monroe will enter into strategic sourcing and marketing agreements with BP and Phillips 66. The acquisition includes pipelines and transportation assets that will provide access to the delivery network for jet fuel reaching Delta's operations throughout the Northeast, including its hubs at LaGuardia and JFK.

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