Dahlman Rose Out With An Update On Airline Sector (AAWW, ALK, DAL)
Dahlman Rose & Co. is out with a research report on the airline sector. In the report, Dahlman covers such companies as Atlas Air Worldwide Holdings, Inc. (NASDAQ: AAWW), Alaska Air Group, Inc. (NYSE: ALK), and Delta Air Lines, Inc. (NYSE: DAL), all which are rated at Buy. It has price targets of $67, $60 and $16 respectively on these companies.
In the research note, Dahlman writes, "Most of the domestic airlines have reported September traffic. We have continued to see double digit unit revenue growth on marginal capacity growth, with load factors continuing to improve. Business travel continues to drive unit revenue growth. Forward bookings look strong with the companies showing continued capacity discipline. We believe most airlines will report record or near record 3Q10 EPS. If the airlines continue to be disciplined with respect to capacity growth, 2010 will prove to be a turning point in industry profitability."
