In the three months since analyst Ray Neidl was last on Breakout, stocks, oil and the pace of economic recovery have all fallen sharply, while three of the four picks he made back in March have all risen.
So we were obviously excited to hear what he had up his sleeve now. And the analyst from Maxim Group did not hold back. "If you think the economy is going to really grow, the big carriers are the place to be," Neidl says before elaborating: "I happen to think the economy is really slowing down."
And because airlines have become "very conscious about their capacity," Neidl says they are already cutting their fleets and flights ahead of the Labor Day holiday, the typical end of the busy summer travel season. Combine that with lower fuel costs and rising revenue per available seat, and he says we should see earnings magic through the summer, particularly for the smaller players.
"You have better protection with the niche carriers," he says, because they have lower cost structures andRead More »from Falling Fuel + Shrinking Capacity = Profitable Airlines: Ray Neidl