Delta Air Lines DAL, +0.13% was upgraded to buy from hold by Berenberg analysts, who see “a better value propopsition than the European flag carriers. The U.S. airlines’ demand recovery is more advanced (partly due to their domestic bias), valuations are more compelling relative to history and balance sheets are generally in a better position; the European carriers have been far more hampered by travel restrictions over the past two years,” said analysts Conor Dwyer and William Fitzalan Howard, in a note to clients on Tuesday. They like buy-rated Southwest Airlines LUV, +1.15% for its revenue visibility and balance sheet, the best within in their airlines coverage, while Southwest’s recently renegotiated credit card deal with Chase has “the potential to offer a material profit contribution,” they said. The analysts kept a hold rating on American Airlines AAL, +0.67% and United Airlines UAL, -0.62%.
