Airlines may struggle to keep pace with demand: Analyst

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The Federal Aviation Administration (FAA) is investigating after an engine cover fell off a Southwest Airlines (LUV) Boeing (BA) 737 Max jet during takeoff. TD Cowen Senior Research Analyst Helane Becker joins Yahoo Finance Live to discuss her outlook on the airline sector amid this incident. Considering the large number of flights that take off daily without incident, Becker states that the Southwest incident would not cause her to change her short-term outlook on Southwest's stock. Nonetheless, Becker expresses broader concerns about the airline sector's ability to keep up with growing demand. She cites three key factors holding the industry back: increased oversight, delivery and production delays, and costs rising faster than revenues, impacting profit margins. Despite these challenges, Becker names Delta (DAL) and United (UAL) as good buying opportunities in the airline sector, as demand is expected to recover for the summer months. About Yahoo Finance: Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life. - Get the latest news and data at finance.yahoo.com - Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO) - Follow Yahoo Finance on social: X: http://twitter.com/YahooFinance Instagram: https://www.instagram.com/yahoofinance/?hl=en TikTok: https://www.tiktok.com/@yaho

Published 2024-04-09 · Watch on YouTube ↗
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