United, one the largest holdings in JETS, said last week it will start charging some customers flying to Europe $60 to check an additional bag. Some airlines are doing away with services that were once free on select flights and charging passengers for those privileges as a way of boosting revenue.
Airlines also attractively valued relative to the broader domestic equity market. JETS is trading at a 10.0 price-to-earnings and a 2.2 price-to-book, compared to the S&P 500’s 16.9 P/E and a 2.8 P/B.
“Airlines, including United and Southwest, have revised their capacity plans for 2018, and she expects both American and Delta will do so as well when they report second-quarter earnings in July,” Barron’s reports citing, Becker, the Cowen analyst.
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