Jul. 2 at 8:49 PM
Jefferies identified Delta Air Lines and United Airlines as its top airline picks, citing premium-focused business models, resilient earnings and superior margin potential. The firm believes both carriers are better positioned than peers thanks to higher-margin revenue streams and strong operational execution.
Delta is Jefferies' top choice, driven by its industry-leading profitability, premium cabin and corporate travel exposure, and its lucrative co-branded credit card partnership with American Express, which provides recurring high-margin revenue. The airline also recently raised its quarterly dividend by 15% and received price target increases from UBS and Bernstein on improving earnings expectations.
United ranks second, supported by the largest international route network among U.S. airlines, continued growth in premium cabins, ongoing fleet modernization and improving cost discipline, all of which are expected to drive further margin expansion.
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