- Seaport Global analyst Daniel McKenzie downgraded certain companies in the Airlines sector. McKenzie cites "energy market chaos" tied to the Russian/Ukraine war and calls it a "weaker balance sheet story" as the reason behind the downgrade.
- The analyst mentions airlines likely need to begin planning for a worse oil shock. Although pent-up demand "remains great," airlines likely need to cut roughly 10%-15% of capacity from 2022 plans to "gain the kind of pricing power needed to offset the worse oil shock."
- Related: Airlines Depend On Hedging, Fuel Surcharges As Oil Surges: Report
- The analyst downgraded Gol Linhas Aereas Inteligentes SA GOL to Neutral from Buy and removed his prior price target.
- The analyst downgraded Azul SA AZUL to Neutral from Buy and removed his price target.
- The analyst downgraded American Airlines Group AAL to Neutral from Buy and removed his prior price target.
- Price Action: GOL shares are trading lower by 8.52% at $5.55, AZUL lower by 10% at $11.67, and AAL lower by 4.25% at $13.97 on the last check Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in