Hudson Securities Makes No Changes To Airline Industry Estimates

After a detailed look at domestic capacity to 12,273 domestic city pairs flown by 12 key U.S. airlines, Hudson Securities said that it is too early to worry about capacity add backs at this stage of the recovery in light of pent up demand. “Overall domestic industry capacity measured by both ASMs & Seats are up just 2.4% and 2.1% YoY respectively, in part given reduced flying from UAL and Frontier, but also from moderate capacity growth by Delta Air Lines, Inc. DAL, Corporation AMR, and US Airways Group, Inc. LCC,” Hudson Securities writes. Hudson Securities added that it is not making any changes to its estimates or valuations. Delta Air Lines currently trades at $13.77; AMR Corporation trades at $8.33; and US Airways trades at $11.93.