This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Airlines Expect a Slow Recovery

HOUSTON ( TheStreet) -- Airlines see what Wall Street sees: The recovery, if it continues, will be a slow one.

While most carriers have shown or will show improvements in revenue-per-available-seat mile, Continental (CAL - Get Report) CEO Jeff Smisek reminded Thursday that those improvements result from comparisons with weak numbers compiled during the low point of the travel slowdown.

"Everyone should curb their RASM enthusiasm going into this quarter as we will again benefit from extremely weak comps," Smisek said during an earnings conference call. "We're a long way from being out of the woods."

As to the recovery, "I suspect it will be long and slow," Smisek said. "(But) a long and slow recovery is better than what we faced in 2008 and 2009."

Executive Vice President Jim Compton added: "We are seeing business traffic coming back slowly, but we are stressing the word 'slowly.'" In each month of the fourth quarter, he said, Continental saw a smaller sequential decline in its RASM.

Meanwhile, on Thursday Southwest (LUV - Get Report) CEO Gary Kelly said, "We're very cautious about the current state of the economy and the outlook for the year.

"Go back to the 1991 recession," Kelly said, during an earnings conference call. "It was years before business travel recovered," he said, noting that some business markets have not yet recovered from the 2001 recession. "There's no historical precedent for a sharp rebound in business travel," he said. "People change their habits. The sales guys who used to take one trip a month, they discover they only have to travel once a quarter."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LUV $36.24 2.55%
CAL $25.38 3.05%
AAPL $93.99 0.31%
FB $102.01 0.10%
GOOG $682.40 -0.10%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs