Delta, American, United and JetBlue have each forecasted improvements in fourth quarter unit revenue, reports Investor’s Business Daily (IBD), with American adding that it could be positive by the end of 2016. Aided by Warren Buffett’s change of heart on the sector, with Berkshire Hathaway purchasing stakes in a handful of the major domestic carriers in 2016, “airline stocks have taken off too,” the article continues.
Despite the short-term optimism, however, the future is still uncertain. Competition for leisure travelers from budget carriers for example, in the U.S. and over the Atlantic Ocean, could continue to pose a threat for United, Delta and American, reports IBD.
Past performance does not guarantee future results.