Cowen noted the recent selloff in the airline sector and said little has changed in the industry's fundamental outlook. The firm said May comps were the toughest for the group, but they are still expecting record summer traffic, setting up a more favorable back half of the year. Cowen believes the group has lost discipline with their communication and that management teams need to be more transparent. Cowen reiterated its Outperform rating on United Continental (UAL), Alaska Airlines (ALK) and Southwest (LUV) shares.
Says saw nice acceleration in managed business revenues in Q1. Says continued streak of "solid" operations performance in Q1. Says eliminating service in Syracuse, Cozumel, Bellingham, and Houston. Says reducing flights in Atlanta and Chicago. Comments taken from Q1 earnings conference call.
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