HSBC analyst gives three major US airlines ‘buy’ ratings

A HSBC analyst has assigned three major US airlines a ‘buy’ rating in recent coverage, as well as assigning another major airline a ‘hold’ rating. HSBC Analyst Achal Kumar and his team highlighted Delta Air Lines (DAL), United Airlines (UAL) and American Airlines Group (AAL) as three stocks to buy, as well as advising owners of Southwest Airlines (LUV) to hold the stock. These decisions were made due to relevant circumstances surrounding each individual airline, with Delta most prominent because of its higher market share and its competitive positioning. United Airlines was highlighted due to being in the strongest position prior to the pandemic to branch out into the U.S-Asia market, and HSBC believes that as the demand for Asian routes pick up, United will be well situated. American Airlines was also highlighted due to it’s coverage of both the domestic US market, where it is described to have a “strong presence”, and the companies presence in South America. It was also noted that American had recently completed its fleet renewal programme, giving it the youngest fleet amongst the major carriers.