Dahlman Rose Raises 2010 & 2011 Forecasts On Airlines

Dahlman Rose & Co. is raising its 2010 and 2011 earnings estimates, due to the International Air Transport Association raising its 2010 revenue and earnings forecasts. In the report, Dahlman Rose covers Alaska Air Group, Inc. ALK, Delta Air Lines, Inc. DAL, JetBlue Airways Corporation JBLU and others. It rates ALK and DAL at Buys, and JBLU as a Hold. In the research note, Dahlman Rose writes, "The International Air Transport Association (IATA) updated its 2010 and 2011 guidance. IATA is now looking for worldwide airlines to report 2010 net income of $8.9 billion, up from its prior forecast of $2.5 billion. The Association also put out preliminary 2011 guidance for net income of $5.3 billion. The 2011 decrease in profit is due to a slowdown in estimated GDP growth from 3.2% in 2010 to 2.6% in 2011 as estimated by IATA."