- UBS weighs in on the airline sector just ahead of the Q2 earnings season.
- The firm says the reopening trade narrative has seemed to fade after 2019 domestic leisure levels were within reach and "importantly" as yields came back equally quickly in the market. It is noted that investors have had to deal with the "elongation" of the international reopening, the throwing of the "domestic capacity gauntlet" by United and the lack of clarity/good data on the corporate reopening in the current quarter.
- Looking at the Q3 setup in the sector, UBS says it likes Alaska Air Group (NYSE:ALK) given consensus marks appear to have upside and with the near uniform sell-off in airline stocks allowing investors to move up in quality.
- The Seeking Alpha Quant Rating of 2.78 on ALK places it in the middle of the pack for the airline sector.