Airline investors may have to wait until better weather comes their way as winter storms and new rules are causing havoc in the industry, said Helane Becker, airlines analyst at Dahlman Rose.
“We normally keep a few cents in our pocket in the first quarter for weather, but what we’re seeing is far worse than what the industry expected and part of the cancellation problem has to do with the new tarmac rule that penalizes airlines for having planes sitting on the runway more than three hours,” Becker told CNBC.
Airline stocks have taken a hit with the sector plunging more than 8 percent in January.
However, Becker said as the weather warms up, investors should look into companies such as United Continental , Delta and Hawaiian Holdings . She has “buy” ratings on both United Continental and Delta.
“We definitely are seeing a shift away from lower-yielding leisure travel to higher-yielding business travel and as business continues to come back—and if the consumer comes back at all—we should have very good numbers,” she explained. “We’re a little cautious on the first, but we’re looking at a good summer.”
Scorecard—What She Said:
- Becker's Previous Appearance on CNBC (Nov. 24, 2010)
CNBC Data Pages:
No immediate information was available for Becker or her firm.