BUZZ-BofA expects network carriers to outperform due to premium revenues, corporate travel

BofA expects network carriers such as Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O to continue to outperform due to premium revenues, the rebound in corporate travel and growth in Atlantic routes

Says domestic carriers like Southwest Airlines LUV.N and JetBlue Airways JBLU.O to have less exposure from such positive trends

BofA expects Q1 2025 EPS for Alaska Air Group ALK.N, JBLU and LUV to be below Wall Street estimates, as high fuel costs partially offset strong revenues

"Jet fuel is ~20% of an airline's operating costs, so rapid changes to jet fuel can move near-term earnings estimates meaningfully" - BofA

Brokerage upgrades AAL to "neutral", while downgrades LUV and JBLU to "underperform"

Brokerage hikes price objectives on ALK and AAL to $80 and $20, respectively, lowers for LUV to $31

(Reporting by Rupali Chaudhary in Bengaluru)

((Rupali.Chaudhary@thomsonreuters.com))