Cowen Research Helane Becker is out with commentary on the airline sector.
The closely-watched analyst lowers American Airlines Group (NASDAQ:AAL), Alaska Air Group (NYSE:ALK), JetBlue (NASDAQ:JBLU), Spirit Airlines (NASDAQ:SAVE) and United Continental (NYSE:UAL) to Market Perform from Outperform on concerns over margins. Delta Air Lines (NYSE:DAL) remains the favorite in the sector - while Southwest Airlines (NYSE:LUV), SkyWest (NASDAQ:SKYW) and Volaris (NYSE:VLRS) hold on to their Outperform ratings.
The U.S. airline sector as a whole is seen growing capacity in 2017 by 2.5% vs. +3.5% in 2016. Unit revenue growth of +0.7% is forecast vs. -4.6% last year. Jet fuel costs are predicted to increase 15% Y/Y.
Source: Cowen's Twitter account
Related ETF: JETS.
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