By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Sign In
BusinessLogrBusinessLogr
Aa
  • Home Beauty
  • Stocks
  • Finance
  • Business
  • Company
  • Economy
  • Industry
  • Investing
  • Car News
  • Contact Us!
Reading: Airline stocks should fly higher: Top analyst
Share
BusinessLogrBusinessLogr
Aa
Search
  • Home Beauty
  • Stocks
  • Finance
  • Business
  • Company
  • Economy
  • Industry
  • Investing
  • Car News
  • Contact Us!
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
BusinessLogr > Finance > Airline stocks should fly higher: Top analyst
Finance

Airline stocks should fly higher: Top analyst

deep
Last updated: 2015/12/18 at 6:21 PM
deep Published December 18, 2015
Share
2 Min Read
SHARE

Even though the commercial airline industry is on track to see its best profit ever, the stocks are stuck in a holding pattern.

The benefits of higher ticket prices, strong airline traffic and low fuel prices aren’t doing much to lift the stocks. In fact, the NYSE Arca Global Airline Index, which tracks the industry, is down by double digits so far this year.

It’s a predicament that Institutional Investor’s top-rated airline analyst ties to concerns about potential capacity creep and weak unit revenue trends.

“The fact of the matter is the industry is holding onto about two-thirds of fuel cost savings right now,” said J.P. Morgan Chase senior airline analyst Jamie Baker on “Fast Money” this week. “We see a lot to be optimistic about with the stocks and industry fundamentals going into 2016,” he said.

Baker also noted that the aftermath of the Paris terror attacks earlier this month shouldn’t have too much of an effect on the airlines.

“Airline investors learned do not underestimate the tenacity of travelers when confronted with events like these. The Bali bombing, London, Madrid, Mumbai — none of these events have had a discernible impact on air travel demand,” he said.

Delta Air Lines planes at John F. Kennedy Airport in New York.

Getty Images
Delta Air Lines planes at John F. Kennedy Airport in New York.

In this environment, Baker chose Delta Air Lines as his top pick.

“It’s Delta where we feel the most certain about our earnings model,” said Baker. “Delta significantly overpaid for fuel in the first half of this year because they continue to cling to the antiquated notion of fuel hedging. That turns into an advantage in the first half of 2016. They are likely to show more margin momentum than any carrier in the space.”

Shares of Delta are down about 1 percent so far this year.

[“source-businesstoday”]

 

 

You Might Also Like

Options for Roof Financing with Bad Credit: A Guide for Allen Residents

Gta Agency Passive Income

your income space review

Tieghan gerard income in banks

Passive income for dentists

TAGGED: Airline stocks should fly higher: Top analyst

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
[mc4wp_form]
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
deep December 18, 2015
Share this Article
Facebook Twitter Email Print
Share
Previous Article BofA-ML sees RBI holding rates in policy review on Jan 28
Next Article RBI seen holding rates on Jan 28 on easing inflation: Poll

Most Viewed Posts

  • 20 Fitness Franchises: Planet Fitness and Beyond
  • Choosing the Right Legal Structure For Your Business
  • bmo harris express loan payment
  • payday loans that work with chime bank
  • find a loan shark on craigslist

Most Viewed Posts

  • 20 Fitness Franchises: Planet Fitness and Beyond
  • Choosing the Right Legal Structure For Your Business
  • bmo harris express loan payment
  • payday loans that work with chime bank
  • find a loan shark on craigslist

Recent Posts

  • The Essence of Public Storage Units
  • Guide to Retirement Planning: Putting Money Into the Future

FOXIZ

© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

[mc4wp_form]
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?