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Analyst Interview Excerpt
Investing in Airlines - Helane Becker - Jesup & Lamont


Full article published: 11/23/2009


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TWST: Let's start with your overall outlook for the airline industry today. What is your outlook and why?
Ms. Becker: We think that the airlines have seen the bottom or are in the process of bottoming, and our outlook for the third quarter is for an aggregate total of about 30 billion in revenue, and operating profit of about 600 million and a net loss of about 400 million. Obviously, all numbers exclude non-recurring gains, charges and mark-to-market hedge-related gains and losses. The revenue estimate is for a decline of about 8%. That compares to our initial estimate earlier in the year that revenues would be down between 7% and 9%. I think that the fourth quarter should show a little bit of improvement versus the third quarter and versus last year. We're thinking the fourth quarter will be low single digits, so down 3% to 7%. And then 2010 we think will be better.

TWST: So perhaps the worst is behind us?
Ms. Becker: We think the worst is behind us.

 

Tickers included in this excerpt: AAI, AFLYY, ALGT, ALK, AMR, BAY, CAL, DAL, HA, LCC, LHA, LUV, RJET, UAUA

 

For more information call (212) 952 7433. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.