Recommendation Overview
Jefferies has identified Delta Air Lines and United Airlines as its leading picks in the U.S. airline sector, citing each carrier’s premium‑revenue business models, margin strength, and strategic positioning that deliver higher profitability relative to peers.
Delta Air Lines
Jefferies names Delta Air Lines as its preferred airline investment, highlighting the carrier’s leadership in premium‑cabin revenue, its long‑standing co‑branded credit‑card partnership with American Express that generates a high‑margin recurring stream, and its status as the highest‑margin operator among major U.S. carriers. The firm notes that Delta recently announced a 15 % increase to its quarterly dividend. In addition, both UBS and Bernstein raised their price targets for Delta, reflecting confidence in the airline’s earnings outlook and sustained demand.
United Airlines
United Airlines is ranked as Jefferies’ second‑favorite airline. The analyst points to United’s position as the U.S. carrier with the largest international route network, especially across the Atlantic and Pacific, which provides a durable network advantage. United is pursuing premium‑cabin growth through its Polaris business‑class and other premium seating, while a fleet‑modernisation programme involving newer aircraft is expected to improve fuel efficiency and lower maintenance costs. Operational improvements and disciplined cost management are projected to support further margin expansion. UBS upgraded United’s price target, and the airline has begun rolling out Starlink Wi‑Fi service on its wide‑body aircraft for transatlantic flights.