US airlines stocks flourish after positive 2Q17 outlook
Shares of US carriers have risen on July 12 after American Airlines followed United and raised its estimates for per seat revenue second-quarter results.
American Airlines Group now anticipates total revenue per available seat mile to increase between 5% and 6% - ahead of expected 3.5% and 5.5%. Following the news, American’s shares climbed up 4.24% in premarket trade on July 12, 2017.
Other US airlines also share a positive outlook for the second quarter results. United Continental is expecting 2% rise in passenger unit revenue, instead of the previously estimated 1%-3% rise, while the passenger unit revenue of Delta Air Lines is expected to be “near the upper end of its second-quarter forecast”.
In addition to rising stocks of particular US carriers, now is a good time to invest in airlines in general, says Ari Wald, head of technical analysis at Oppenheimer. In respect to climbing American Airlines, Southwest Airlines and Delta Air Lines stocks and positive outlooks, he regards airlines as the best stock picks at the moment.