In The News

Morgan Stanley: Low Fuel Prices Help Offset Airlines’ Headwinds

from Benzinga August 4, 2015

Jet fuel has fallen around 15 percent since early July, which has offset potential headwinds for airlines including lukewarm passenger revenue per available seat mile (PRASM), a recent Morgan Stanley report says.

Rajeev Lalwani, an analyst with the wealth management firm, notes that “risk-reward is skewed to the upside, and we remain positive on airlines fundamentally.” His reasons for the positive outlook include the “balancing of supply-demand over time, substantial capital returns, and attractive valuation multiples.”

Commenting on fuel prices, Frank Holmes notes that Brent crude oil’s dip below $50 has been a “big win for airlines.”


Article summary written by U.S. Global Investors.