The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
1336 ET - The proposed merger of United Airlines and American Airlines, as pitched to senior government officials by Scott Kirby, according to Bloomberg, would create a behemoth. "Before any divestitures, a combined United and American would have 40% of domestic available seat miles," TD Cowen analyst Tom Fitzgerald says in a research note, citing domestic market share data from 1H26 schedules. "Their pro forma share of the 3 NYC airports, the 2 Chicago airports, and LAX would be 45%, 70%, and 46%, respectively." Due to the magnitude, Fitzgerald would expect opposition from state attorneys general and significant lobbying against the deal by the rest of the airline industry, assuming the federal government were to signal its blessing. United shares are up 2.6%, while American shares gain 8.1%. (connor.hart@wsj.com)
1319 ET - United Airlines CEO Scott Kirby has pitched the idea of a merger with American Airlines to senior government officials, according to a Bloomberg report. "It's unclear if any actual process is underway, or if any formal proposals have been made," UBS analysts say in a research note. What is clear, they add, is that any potential deal would face intense regulatory scrutiny. A combination would create by far the largest airline in the world, with over $120 billion in combined revenues prior to any required divestitures, the analysts say. "At the moment, we think the chances of this deal materializing are probably remote," they write. "Still, if this proposed merger goes through, it could prove to be a game changer for the U.S. airline industry and might usher in even more consolidation, helping to drive structurally higher margins for the sector." (connor.hart@wsj.com)
1234 ET - Southwest Airlines is bringing on new talent as part of its efforts to improve the customer experience and its digital presence. The carrier named Sabrina Callahan as its first chief digital and marketing officer, where she'll focus on growing its customer base and shaping how the brand shows up as it enters new markets and offers more options, the company says. Callahan has experience leading modernization initiatives and e-commerce expansion, and previously worked at companies like Hilton, Walmart and AT&T. Southwest also appointed Nandika Suri as vice president of rapid rewards, where she'll work to increase loyalty program membership and bolster relationships with key partners. Suri has previously built and scaled loyalty and rewards proms at companies like Under Armour and United Airlines. (kelly.cloonan@wsj.com)
1117 ET - The $10.8 billion Amazon-Globalstar deal likely improves the strategic outlook for MDA Space. Canada's MDA has a $1.1 billion contract with Globalstar as its prime contractor on the low Earth orbit constellation, which Globalstar operates and Apple uses for its own satellite connection. With Amazon now in the picture, Globalstar's satellite infrastructure could become more flexible, creating a more open environment for third-party technology providers, since Amazon still needs to differentiate its satellite ambitions and close the gap with SpaceX. Desjardins analyst Benoit Poirier thinks the positioning increases the likelihood that Amazon will seek external expertise, which could create new collaboration opportunities for MDA as Amazon builds out its network. MDA shares are up 8.6% to C$46.81. (adriano.marchese@wsj.com)
1055 ET - Aluminum prices could near $4,000 a metric ton if the Strait of Hormuz remains blocked through the end of May, says Norman Liebke from Commerzbank. The market is already showing clear signs of a near-term supply squeeze due to severe disruptions in the Middle East. The spot price is around $90 higher than the three-month forward price, indicating that buyers are paying a premium to secure immediate supply. The market was already in backwardation, but the curve has steepened further, widening the gap between near- and long-dated prices. The nearest-month contract now trades about 10% above the one-year forward, underscoring the intensity of the current shortage. In afternoon trading, three-month LME futures are down 1.3% at $3,577 a ton, though prices remain up nearly 20% since the start of the year. (giulia.petroni@wsj.com)
0137 ET - JD Logistics could report stronger-than-expected 1Q earnings, say Nomura analysts in a note. This likely stems from the pick up in growth for its integrated supply chain revenue and organic revenue from other customers, they say. Nomura expects 1Q net profit before non-controlling interest likely rose 38%, beating the latest consensus estimates by 11%, while projecting adjusted net profit margin to expand 0.2 percentage points to 1.8%. The logistics service provider also flags that fuel cost increases have limited impact on 1Q profitability, but could weigh more in 2Q, the analysts say. Nomura maintains its buy rating and HK$18.00 target price. Shares are up 4.5% at HK$15.09. (megan.cheah@wsj.com)
0004 ET - Qantas's decision not to commence its previously announced A$150 million on-market buyback causes no surprise at Macquarie. With fuel costs surging and demand uncertain, the investment bank's analysts tell clients in a note that they hadn't expected the carrier to start buying stock. They estimate that Qantas will take close to a A$500 million Ebitda hit from the Iran conflict. For international flights, they think that A$150 million-A$200 million of additional revenue helps offset A$600 million in fuel costs. Domestically, they see something like a A$70 million hit. Macquarie expects any negative impact on international demand to more fully emerge in 2026's December quarter. Macquarie has an outperform rating and A$11.30 target price on the stock, which is down 1.1% at A$8.91.(stuart.condie@wsj.com)
2330 ET - Qantas's bull at RBC reckons that the modest share-price fall that greeted the carrier's fuel-price warning suggests investors had already priced in bad news. Analyst Owen Birrell estimates the Australian airline's efforts to mitigate A$700 million of additional second-half fuel costs should limit the earnings hit to between A$450 million and A$500 million. He reckons this implies an 18% hit to annual pretax profit forecasts. The 1% drop in the stock's price that followed the announcement therefore is seen by Birrell that the market already anticipated higher fuel costs. He tells clients in a note that there is some risk to fiscal 2027 earnings. Shares are at A$8.93. RBC has an outperform rating and A$11.25 target price on Qantas. (stuart.condie@wsj.com)
2218 ET - The Malaysian oil and gas sector's earnings are likely to be supported by higher oil prices in the near term, RHB Research analyst Lee Yun Leon says in a report. Oil prices have surged amid the Middle East conflict. "While we expect prices to moderate over time, supply restoration is unlikely to be immediate, given restart lags and logistical constraints," the analyst says. RHB upgrades its rating on the sector to overweight from neutral, naming Dialog Group and MISC as its top picks.(amanda.lee@wsj.com)
2020 ET - Korean Air Lines could post weaker-than-expected 2026 earnings despite a strong 1Q performance, say Samsung Securities' Kim Young-ho and Choi Seung-hwan. Higher jet-fuel costs amid the war in Iran and a weaker won against the U.S. dollar could erode the South Korean flag carrier's annual profit, the analysts write in a note. They expect Korean Air's operating profit to reach 906 billion won in 2026, 44% below their previous estimate and down 19% from a year earlier. They slash their earnings-per-share for Korean Air by 88% to 321 won this year. (kwanwoo.jun@wsj.com)
(END) Dow Jones Newswires
April 14, 2026 16:50 ET (20:50 GMT)
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