{"id":45505,"date":"2023-08-07T14:16:12","date_gmt":"2023-08-07T18:16:12","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/southwest-and-american-get-downgraded-the-airline-sector-hits-turbulence\/"},"modified":"2023-08-07T14:16:14","modified_gmt":"2023-08-07T18:16:14","slug":"southwest-and-american-get-downgraded-the-airline-sector-hits-turbulence","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=45505","title":{"rendered":"Southwest and American Get Downgraded. The Airline Sector Hits Turbulence."},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-BAR-0000713328\">\n<div data-layout=\"wrap\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          wrap\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--wrap\n    article__inset--lead\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-wrap\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<p>It\u2019s been a turbulent earnings season for U.S. airlines and it\u2019s led to a reassessment of the sector\u2019s fortunes. <\/p>\n<p>Most notable are the signs of a domestic demand slowdown flagged by all major carriers heading into the second half of the year.<\/p>\n<div class=\"paywall\">\n<p>However, Redburn analyst James Goodall sees domestic airlines continuing to face pressure over the coming years, not just months, preferring carriers more exposed to the international market. With that in mind, he downgraded<br \/>\n        Southwest Airlines<br \/>\n       (ticker: LUV) to Sell from Neutral, and<br \/>\n        American Airlines<br \/>\n       (AAL) to Neutral from Buy in a note Monday.<\/p>\n<p>American is one of the three U.S. airlines most exposed to international travel but Goodall noted it has the \u201cgreatest exposure to the more competitive domestic market.\u201d<\/p>\n<p>Goodall upgraded<br \/>\n        United Airlines<br \/>\n       (UAL) to Buy from Neutral, given its strong international presence, and maintained a Buy rating on<br \/>\n        Delta Air Lines<br \/>\n       (DAL).<\/p>\n<p>Earnings season accentuated the underperformance of domestic-focused U.S. airlines against their more internationally active peers. The bumper comparable period of 2022 is one factor, and so is the boom in international travel demand at the expense of domestic journeys.\u00a0<\/p>\n<p>While those things are both short-term issues, Goodall said growing domestic capacity will result in \u201cmargin pressure well into 2024 as the industry struggles to offset structural cost inflation.\u201d He expects domestic capacity growth of around 9% year-over-year in the next two quarters, meaning continued pricing pressure on domestic routes.<\/p>\n<p>\u201cInternational, however, should perform more strongly thanks to a rationalized global fleet,\u201d he added.<\/p>\n<p>The divide between domestic and international exposure is reflected in the stock market.<\/p>\n<p>United and Delta, two of the three carriers with the most overseas flights, are up more than 35% so far in 2023. The third, American, is up 25%, as of Friday\u2019s close.<\/p>\n<p>Shares of the major domestic players have struggled in comparison.<br \/>\n        Southwest Airlines<br \/>\n       is down 2.8% since the beginning of the year,<br \/>\n        Spirit Airlines<br \/>\n       (SAVE) is down 17%,<br \/>\n        Frontier Group<br \/>\n       (ULCC) has fallen 21%, while<br \/>\n        JetBlue Airways<br \/>\n       (JBLU) is up 3.1%.<\/p>\n<p>Spirit\u2019s CEO Ted Christie offered a crumb of comfort for domestic carriers last week, noting that he expects demand to shift back towards domestic travel after the summer ends and children go back to school.\u00a0<\/p>\n<p>\u201cThis should mean a more normal pricing and demand environment for the peak holiday travel periods in the fourth quarter,\u201d he said in a statement.<\/p>\n<p>Write to Callum Keown at callum.keown@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/articles\/southwest-american-downgraded-united-upgraded-turbulence-36035675?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s been a turbulent earnings season for U.S. airlines and it\u2019s led to a reassessment of the sector\u2019s fortunes. Most notable are the signs of a domestic demand slowdown flagged by all major carriers heading into the second half of the year. However, Redburn analyst James Goodall sees domestic airlines continuing to face pressure over [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":45506,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-45505","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Southwest and American Get Downgraded. The Airline Sector Hits Turbulence. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"It\u2019s been a turbulent earnings season for U.S. airlines and it\u2019s led to a reassessment of the sector\u2019s fortunes. Most notable are the signs of a domestic\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=45505\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Southwest and American Get Downgraded. The Airline Sector Hits Turbulence. | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"It\u2019s been a turbulent earnings season for U.S. airlines and it\u2019s led to a reassessment of the sector\u2019s fortunes. Most notable are the signs of a domestic\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=45505\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-07T18:16:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-07T18:16:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/08\/1691432173_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=45505#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=45505\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Southwest and American Get Downgraded. The Airline Sector Hits Turbulence.\",\"datePublished\":\"2023-08-07T18:16:12+00:00\",\"dateModified\":\"2023-08-07T18:16:14+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=45505\"},\"wordCount\":416,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=45505#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=45505\",\"url\":\"https:\/\/ifintechworld.com\/?p=45505\",\"name\":\"Southwest and American Get Downgraded. The Airline Sector Hits Turbulence. | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-08-07T18:16:12+00:00\",\"dateModified\":\"2023-08-07T18:16:14+00:00\",\"description\":\"It\u2019s been a turbulent earnings season for U.S. airlines and it\u2019s led to a reassessment of the sector\u2019s fortunes. Most notable are the signs of a domestic\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=45505#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=45505\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=45505#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Southwest and American Get Downgraded. The Airline Sector Hits Turbulence.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Southwest and American Get Downgraded. The Airline Sector Hits Turbulence. | iFintechWorld","description":"It\u2019s been a turbulent earnings season for U.S. airlines and it\u2019s led to a reassessment of the sector\u2019s fortunes. Most notable are the signs of a domestic","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=45505","og_locale":"en_US","og_type":"article","og_title":"Southwest and American Get Downgraded. The Airline Sector Hits Turbulence. | iFintechWorld","og_description":"It\u2019s been a turbulent earnings season for U.S. airlines and it\u2019s led to a reassessment of the sector\u2019s fortunes. Most notable are the signs of a domestic","og_url":"https:\/\/ifintechworld.com\/?p=45505","og_site_name":"iFintechWorld","article_published_time":"2023-08-07T18:16:12+00:00","article_modified_time":"2023-08-07T18:16:14+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/08\/1691432173_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=45505#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=45505"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Southwest and American Get Downgraded. The Airline Sector Hits Turbulence.","datePublished":"2023-08-07T18:16:12+00:00","dateModified":"2023-08-07T18:16:14+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=45505"},"wordCount":416,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=45505#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=45505","url":"https:\/\/ifintechworld.com\/?p=45505","name":"Southwest and American Get Downgraded. The Airline Sector Hits Turbulence. | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-08-07T18:16:12+00:00","dateModified":"2023-08-07T18:16:14+00:00","description":"It\u2019s been a turbulent earnings season for U.S. airlines and it\u2019s led to a reassessment of the sector\u2019s fortunes. Most notable are the signs of a domestic","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=45505#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=45505"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=45505#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Southwest and American Get Downgraded. The Airline Sector Hits Turbulence."}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/45505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45505"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/45505\/revisions"}],"predecessor-version":[{"id":45507,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/45505\/revisions\/45507"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/45506"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}