Why the airline sector needs to 'focus on profits'

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The path to profitability in the airline industry requires more than just recovering from pandemic-era disruptions. Melius Research Director Conor Cunningham joins Market Domination to discuss his outlook on the airline sector.

Cunningham emphasizes that the airline sector's strength primarily hinges on supply management. He stresses that the entire industry currently "needs to focus on profits," which can be achieved by "slowing growth and reconfiguring your network and figuring out who your customer is and what product you want to sell them going forward."

He suggests that if airlines prioritize profitability, then "the supply side of the equation should be in their favor."

Regarding investment opportunities in the sector, Cunningham highlights United Airlines (UAL) and Delta Air Lines (DAL) as standout stocks, noting that "their plan is really just to continue to lean in on the premium side of the equation that's done really well while also offering a product that people want on the basic side."

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This post was written by Angel Smith

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