Goldman Sachs GroupCut the consensus forecast for the airline industry and re-examine the impact of inflationary pressures on the industry.
"lower revenue expectations, coupled with high aviation fuel prices and inflationary non-fuel cost pressures, have prompted us to revise AAL.US 's net loss forecast for the fourth quarter to December from $350 million to $1.5 billion, and the adjusted net profit forecast for 2022 fell 18 per cent to $8.1 billion," Catherine O'Brien, an analyst at the bank, said in a new report.
In addition, O'Brien and its team of analysts are concerned about the debt burden of American Airlines and are watching closely, and the rating will be updated from time to time.
"in view of our view of capacity / pricing, we downgraded US Airlines to 'outperform the market' because of its relatively high operating leverage, which will drag down its earnings recovery in the medium-term weak pricing environment for the aviation industry. Although we believe the company will be deleveraged in the next few years, the company is relatively highly leveraged in the medium term, which is part of the reason for its high operating leverage ratio. "
In addition, Goldman Sachs Group downgraded JetBlue (JBLU.US) from "buy" to "neutral".
As of press time, American Airlines fell 3.24% to $20.775 and JetBlue fell 2.2% to $15.765.