0930 ET - Airlines just can't catch a break. Concerns of slower growth, higher inflation and a more isolationist approach by the US should significantly disrupt their competitive environment and ground their multiples over the near-term, TD Cowen's Tom Fitzgerald and Helane Becker say in a research note. The analysts are focusing largely on guidance on 2Q/FY25 ahead of 1Q results starting to come in later this month. "We are below consensus on 2Q guidance metrics for every US airline and expect management teams to guide conservatively," say the analysts. They say they still favor legacy carriers over low-cost carriers as they expect a greater of any trade down among consumers to be within the same carrier's cabin, rather than prior airline downturns that served as a boost for low-cost carriers. (denny.jacob@wsj.com; @pennedbyden)
(END) Dow Jones Newswires
April 04, 2025 09:31 ET (13:31 GMT)
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