From Investing.com: 2024-11-15 08:03:03

Goldman Sachs resumed coverage of U.S. airlines, issuing Buy ratings for Delta, United, and Alaska Air, while assigning Sell ratings to JetBlue and Southwest. The industry faces challenges such as supply constraints and maintenance issues, but off-peak capacity discipline and improving unit revenue trends are expected to support growth.

Carriers with exposure to premium demand and strong competitive positioning are likely to outperform. Delta, SkyWest, and United are expected to see improved margins, reflecting the benefits of product segmentation and premium demand growth. Supply-side constraints remain a key issue, with aircraft delivery delays expected to continue into 2025.

JetBlue is dealing with maintenance challenges for Pratt & Whitney engines, impacting fleet availability and costs. While recent pilot agreements have driven cost increases, the bulk of these pressures are now behind the industry. Despite ongoing pressures, capacity discipline and premium demand offer opportunities for long-term profitability improvements.



Read more at Investing.com: Delta, United, Alaska Air at Buy By Investing.com