Morgan Stanley Leaps Bullishly Into Virus-Racked U.S. Airlines
- Initiates coverage of country’s airlines with attractive view
- Air travel demand to return faster than consensus forecasts
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Morgan Stanley is bullish on U.S. airline stocks, initiating coverage on the sector with an “attractive view” and overweight ratings for Southwest Airlines Co., JetBlue Airways Corp. and Delta Air Lines Inc.
While recovery from the coronavirus pandemic will be bumpy and there are potential pitfalls ahead, passengers are likely to return once a vaccine is available and demand could reach pre-Covid levels by late 2021, about two years ahead of consensus forecasts, analysts including Ravi Shanker wrote in a report. Competitive pressure will also ease with fewer domestic players.