Bear Stearns cut estimates on select airlines, including AMR Corp. (AMR ).
Analyst David Strine says recent commentary points to less sanguine unit revenue in the midst of stubbornly high oil prices. Due to his reduced outlook for yield, RASM (revenue/available seat mile), he cut estimates.
For AMR, he widened a 45 cents first-quarter loss per share estimate to 88 cents loss. For Delta (DAL ), he lowered $2.75 first-quarter loss per share estimate to a $3.10 loss. For Continental (CAL ), the $1.45 first-quarter loss per share was cut to $1.50 loss. And he cut JetBlue's (JBLU ) 13 cents first-quarter EPS estimate to 12 cents.
Strine says recent airline weakness suggests investors were expecting unit revenue growth in the first quarter, but now expectations have largely been reset. He maintains outperform on AMR, but cuts his $25 price target on the stock to $20.