Imperial Capital weighs in on the red-hot airline sector

|By:, SA News Editor

Imperial Capital isn't getting too carried too away with United Continental's (UAL +2.9%) strong report on per-seat revenue for December which lit up the whole sector yesterday.

The firm notes a late Thanksgiving and a mass cancellations during the month skewed traffic and revenue metrics for the entire industry.

Still, there's little question that capacity rationalization and stable fuel price trends point to a favorable environment for shares prices to run higher. Imperial favors Delta Air Lines (DAL +0.6%) and American Airlines Group (AAL -0.4%) as its top sector picks.