-- United Airlines (UAL), Alaska Air Group (ALK), American Airlines (AAL) and Southwest Airlines (LUV) are heading into next week's Q1 earnings with investor attention centered on demand trends, unit-revenue guidance and renewed consolidation speculation, UBS Securities said Tuesday in a report.
Delta Air Lines' (DAL) strong demand trends and low-teens Q2 revenue outlook set a high bar for the sector, with investors watching whether peers can sustain similar momentum or show signs of normalization, the report said.
For United Airlines, UBS expects mid-teens Q2 revenue growth and above-consensus earnings, supported by improving year-over-year comparisons at its Newark, New Jersey, hub, strong premium demand and scenario-based full-year guidance.
American Airlines is expected to post mid-teens Q2 revenue growth with a modest earnings loss, with potential upside from corporate share recapture but a likely wider guidance range or suspension of full-year targets, the report said.
Southwest Airlines is expected to deliver high-teens unit-revenue growth and above-consensus earnings, with a suspension of full-year guidance anticipated as the carrier continues to advance its transformation strategy, UBS said.
Results are due for Alaska Air on Monday, United on Tuesday, Southwest on April 22 and American on April 23.
United shares fell 2.5% in Wednesday trading, Alaska Air eased 0.2%, American rose 1.1%, Southwest gained 1.2%, and Delta advanced 1%.
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