UBS updates outlook on U.S. airlines, with Buy ratings for Delta, United, Alaska

From Investing.com: 2024-11-26 12:52:27

UBS has updated its outlook on U.S. airlines, with Buy ratings for Alaska Air, Delta Air Lines, and United Airlines, and Sell ratings for Southwest Airlines and JetBlue Airways. Capacity reductions are expected to boost revenue per available seat mile and margins by 2025.

Delta, United, and Alaska are praised for their strong revenue drivers and healthy balance sheets, while Southwest and JetBlue face challenges with low margins and high leverage.

Industry-wide challenges include debt, supply chain issues, and production disruptions from Boeing. UBS sees potential in corporate travel, with a majority of U.S. travel managers expecting spending to remain steady or increase in 2025.

UBS’s methodology favors airlines with diverse revenue streams, strong balance sheets, and proven profitability, making UAL, DAL, and ALK its top picks for investment.



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