Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Markets & Finance

UBS Cuts AirTran, JetBlue to 'Reduce'

UBS Financial downgraded AirTran (AAI) and JetBlue (JBLU) to reduce from neutral, and downgraded America West (AWA) to neutral from buy.

Analyst Sam Buttrick says the only two times in the last two decades when small-discount carrier margins exceeded major airline networks' margins is when the majors reduced their supply. However, he sees the major airlines' capacity coming back in 2004. He also thinks the major airlines are likely to add disproportionately in competitive markets.

Buttrick says today's discounters are bigger and better than ever before -- but they are not immune from the basics of supply and demand. He added that margin growth, which is needed to justify the discount carrier's lofty price-earnings ratios, will become increasingly difficult for discounters as competitive supply returns.

blog comments powered by Disqus