Market Overview

4 Airliners Morgan Stanley Loves (And 2 They Don't)

4 Airliners Morgan Stanley Loves And 2 They Don't
Airline ETF Looks To Take Flight In 2017
The Upside Analysis Of United Continental
JetBlue leads first round of 2017 fare hikes (Seeking Alpha)
Related DAL
Vetr Crowd Clears JetBlue With A Strong Buy Recommendation
Airline ETF Looks To Take Flight In 2017
JetBlue leads first round of 2017 fare hikes (Seeking Alpha)

Morgan Stanley issued a note on airlines Tuesday and provided ratings for North American carriers.

Analysts led by Penelope Butcher noted that "A4A system PRASM growth for the US carriers is down 1.5 percent YoY YTD, though, weather events were a headwind for most in 1Q15."

February A4A system PRASM growth declined 0.5 percent year-over-year, according to the report; however, it accelerated from January levels of -2.3 percent.

Domestic and Atlantic markets were seeing more favorable PRASM trends than Pacific and Latin America, according to the analysts.

Butcher added that preliminary schedules indicated an acceleration in capacity in the Domestic and Atlantic region and a deceleration in the Pacific and Latin America for Q2 2015.

Related Link: 7 Reasons Whitney Tilson Is Bullish On Airline Stocks

The analysts concluded that "management commentary continues to point to capacity discipline among most US carriers."

The analysts rated the following companies Overweight:

  • American Airlines Group Inc (NASDAQ: AAL)
  • Delta Air Lines, Inc. (NYSE: DAL)
  • Spirit Airlines Incorporated (NASDAQ: SAVE)
  • United Continental Holdings Inc (NYSE: UAL)

Two airlines were rated Underweight:

  • JetBlue Airways Corporation (NASDAQ: JBLU)
  • Southwest Airlines Co (NYSE: LUV)

Latest Ratings for AAL

Jan 2017Cowen & Co.DowngradesOutperformMarket Perform
Dec 2016BarclaysInitiates Coverage OnEqual-Weight
Nov 2016CitigroupInitiates Coverage OnBuy

View More Analyst Ratings for AAL
View the Latest Analyst Ratings

Posted-In: Morgan Stanley Penelope ButcherAnalyst Color Analyst Ratings Trading Ideas Best of Benzinga


Related Articles (DAL + AAL)

View Comments and Join the Discussion!