Deutsche Bank analyst Michael Linenberg downgraded American Airlines (AAL), Alaska Air (ALK), Delta Air Lines (DAL), JetBlue (JBLU), Spirit Airlines (SAVE) and United Airlines (UAL), all to Hold from Buy, given his concerns about the increasing risk that the spread of the Covid-19 coronavirus will disrupt travel patterns beyond just China. He also expressed concern that the coronavirus will start to negatively impact peak travel periods - like spring break, Easter and early summer - and worries about the growing number of restrictions on business travelers, "one of the industry's most lucrative revenue streams." Despite the worries, Linenberg is maintaining Buy ratings on regional airlines Allegiant Travel (ALGT), Mesa Air (MESA) and SkyWest (SKYW), noting that Mesa and SkyWest are contract carriers and roughly 75% of Allegiant's markets are sole-served.

The company said, :American is running the best operation in its history because of a steadfast commitment to operational excellence and strong collaboration across the entire airline. The company produced its best-ever first-quarter completion factor and improved its mishandled baggage rate year over year. American achieved these results despite air traffic control challenges and significant weather events across its network during the quarter."

Reports Q1 revenue $12.6B, consensus $12.6B. "The American Airlines team continues to build a reliable, efficient and resilient airline," said American's CEO Robert Isom. "While we aren't satisfied with our first-quarter financial results, we have a strong foundation in place, and we remain on track to deliver on our full-year financial targets. Our team is running a fantastic operation, driving revenue through our commercial initiatives, efficiently managing costs, and producing free cash flow to further strengthen our balance sheet."

Notable companies reporting before tomorrow's open, with earnings consensus, include Merck (MRK), consensus $1.87... Caterpillar (CAT), consensus $5.14... Comcast (CMSCA), consensus 99c... Honeywell (HON), consensus $2.17... Bristol-Myers (BMY), consensus ($4.44)... Altria (MO), consensus $1.15... Keurig Dr. Pepper (KDP), consensus 35c... GE Vernova (GEV), consensus (37c)... Royal Caribbean (RCL), consensus $1.33... Tractor Supply (TSCO), consensus $1.72... Mobileye (MBLY), consensus (6c)... Textron (TXT), consensus $1.23... LabCorp (LH), consensus $3.48... Southwest Airlines (LUV), consensus (34c)... American Airlines (AAL), consensus (29c)... Harley-Davidson (HOG), consensus $1.51.

Travel + Leisure Co. (TNL) and Allegiant (ALGT) "announced a multi-year marketing agreement, allowing both companies to grow their customer engagement through cross-company promotion. The two travel companies will share promotional offerings to each other's customers, providing offers to a broad spectrum of travelers. Allegiant, with more than 15 million Allways Rewards members, and Travel + Leisure Co., with more than 800,000 vacation ownership members and 3.5 million vacation exchange members, will each benefit from a highly engaged base of travelers."

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Boeing (BA) is expected to report results on its fiscal first quarter on Wednesday, April 24, with a conference call scheduled for 10:30 am EDT. What to watch... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here

Says more A220s in service than E190s by the end of April. Says expects average of 11 aircraft to be out of service due to GTF issues through year. Says continues to work towards reaching agreement with Pratt & Whitney for compensation. Expects the number of grounded planes to increase above 2024 levels next year. Says continues to opportunistically look at hedging as a means of mitigating risk. Says 100% focused on executing on strategic initiatives.

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Says evaluating capital light growth options. Says Latin geography continues to be pressured from the elevated industry capacity, expecting unit revenue down mid-teens in Q2. Says $175M-$200M structural cost program achieved $100M in savings since program start. Says fleet modernization program achieved $70M in total program savings, increased expected size of program from $75M to $100M. Says Pratt & Whitney compensation accounting update driving incremental pressure on full-year CASM-ex Fuel guidance. Says actively exploring further cost savings opportunities in productivity, maintenance spend optimization and technology-enabled efficiencies. Says after deferring aircraft to smooth delivery profile, actively exploring opportunities to extend the life of about 30 A320 aircraft to supplement future growth. Says carrying a healthy unencumbered asset base. Comments taken from Q1 earnings conference call slides.

Sees FY24 CASM ex-fuel up mid-to-high single digits y/y. Sees FY24 CapEx ~$1.6B.

Reports Q1 revenue $2.2B, consensus $2.2B. "Thanks to our incredible crewmembers and our reinvigorated focus on improving reliability, our operation performed above plan in the first quarter, resulting in revenue and costs coming in better than expectations," said Joanna Geraghty, JetBlue's chief executive officer. "As we look to the full year, significant elevated capacity in our Latin region, which represents a large portion of JetBlue's network, will likely continue to pressure revenue and we expect a setback in our expectations for the full year. We have full confidence that continuing to take action on our refocused standalone strategy is the right path forward to ultimately return to profitability again." "We've begun rolling out the initial components of our refocused plan. In the first quarter, we announced a number of significant network changes, which are designed to free up unprofitable flying and reallocate it to proven leisure markets where JetBlue has historically won" said Marty St. George, JetBlue's president. "Demand remained healthy in peak periods, and in particular, we saw encouraging performance from our domestic and transatlantic flying, as well as continued outsized demand for our premium seating options."