What's Up at the Terminal: Iran, Nantucket Consumer Takeaways; LGA Slots

Research evidence excerpt

What's Up at the Terminal: Iran, Nantucket Consumer Takeaways; LGA Slots

on (domestic and

international). Drilling into cabin trends, DAL noted that while premium revenue continues to lead y-o-y

growth, main cabin inflected in January and the gap between premium and main cabin revenue growth

has narrowed through the year. While jet fuel has trended lower off recent peaks, the competitive

backdrop and capacity outlook positions both carriers to hold fare increases. AAL views today's

backdrop as supportive to holding higher fares compared to prior cycles, driven by: 1) LCCs/ULCCs

no longer industry margin-leaders and therefore less likely to discount aggressively for competitive

purposes; 2) US carriers are not hedged and therefore no carrier is uniquely positioned to chase

share; and 3) AAL has refined its basic economy offering which is driving more buy-up and driving

the fare umbrella higher.

JetBlue Plans to Scale Back in the Northeast to Focus on Fort Lauderdale. JetBlue announced

plans to shut down its flight attendant base at EWR and tech-operations bases at EWR and LGA this

fall while shifting resources to growth at FLL. Latest Q3:26 schedules show JBLU growing originating

domestic capacity in FLL by ~70% driving a leading market share of 39%. JBLU has been aggressive Sheila Kahyaoglu * | Equity Analyst

in backfilling a US LCC that has ceased operations with a previously large footprint in FLL. +1 (212) 336-7216 | sheila.kahyaoglu@jefferies.com

Jack Ewell * | Equity Analyst

22 LGA Slots For Sale at $87MM. A bankruptcy court has authorized the sale of 22 daily flight +1 (646) 352-5648 | jewell@jefferies.com

slots at LGA for $87MM. Slots are especially valuable at LGA given the airport is one of three slot- Kyle Wenclawiak * | Equity Associate