Investors shouldn’t let airlines’ performance during bad weather, like the snowstorm this week, determine whether they invest in the industry, analyst Matt Jacob told CNBC Wednesday.
“The airlines have had a very difficult stretch with the severe weather,” said Jacob, a director and senior leisure, lodging and airlines analyst with ITG Investment Research, who added that weather doesn’t erode long-term prospects.
Jacob said Delta was the only airline to release numbers related to last month's storm. The company reported that it lost more than $40 million in December, which makes sense, said Jacob, because its routes cover the Northeast and Atlanta, where the storms hit. Atlanta is a Delta hub city.
He added that the post-Christmas storm didn’t have as negative an impact on ticket sales because a lot of the travel during the period was leisure-related (not business) and travelers simply rebooked their flights when airports re-opened.