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$SKYW said it will buy 8 new, dual-class Embraer E175 jets to fly for $ALK's Alaska Airlines. The new planes, to be delivered in 2016, will replace 8 older regional jets $SKYW currently flies for the seattle-based carrier. This comes after $SKYW takes ownership of first of 7 E175s purchased last fall to be flown for Alaska.
$LUV stated that any opportunities on the capital side would be more along the lines of fleet, in terms of opportunities to continue to renew the fleet. The order book is currently at a very manageable level. The company believes there are opportunities to modernize and invest in the business.
$LUV's unit revenues were up 1.9% in 4Q17 and just under 1% for full year 2017. The company is estimating 1-2% unit revenue growth on strong load factors and bookings for 1Q18 and the goal is to achieve positive unit revenue comparisons again for 2018.
$LUV reported net income of $1.9Bil or $3.18 per share in 4Q17 compared to $522MM or $0.84 per share in 4Q16. 4Q17 net income was positively impacted by a $1.4Bil tax benefit due to tax reform legislation. Total operating revenues grew 3.9% to $5.3Bil, driven largely by passenger revenues of $4.7Bil.
United reported 46% jump in profits to $580MM ($1.99/share) due to strong travel demand in 4Q. Passenger revenue per seat flown in a mile (PRASM) rose modestly to 0.2%, but fuel costs were up 20% vs. 4Q16. For 2018, $UAL expects to increase capacity by 4-6% and to spend between $3.6-3.8Bil. The airline projects 2018 EPS to be between $6.50-8.50.
$KSU is seeing 2018 economic activity to be positive driving its industrial and consumer businesses in both steel and paper. However, YoY comps in military shipments are expected to be difficult given the strong performance it had in 2017. $KSU expects its energy segment to be unfavorable in 2018, while crude and frac sand are expected to be good.
In 2018, $KSU expects good growth from majority of its businesses, driven by the chemical and petroleum group. The company added that Mexico energy reform will be a significant focus for 2018, including the continued ramp up of volume driven by more storage projected to come online in 2H18.
$KSU reported a 4Q17 profit jump of 326%, driven by revenue growth across its energy, automotive and, chemical and petroleum units and benefits from U.S. tax code changes. Profit was $551.7MM or $5.33 per share compared to $129.6MM or $1.21 per share a year earlier. Revenue jumped 10.2% to $660MM. On an adjusted basis $KSU earned $1.38 per share.
$FDX said the FedEx Supply Chain results, currently reported in the FedEx Ground segment, and FedEx Custom Critical results, currently reported in the FedEx Freight segment, will be reported with FedEx Trade Networks in the FedEx Express segment effective March 1, 2018.
$FDX said the elements of its new FTN organization are FedEx Custom Critical, FedEx Cross Border, FedEx Supply Chain, FedEx Trade Networks Transport & Brokerage and a new company called FedEx Forward Depots with responsibility for Critical Inventory and Service Parts Logistics, 3-D Printing, Repair Center and the FedEx Packaging Lab.