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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.