Alaska Air downgraded to Peer Perform from Outperform at Wolfe Research

Wolfe Research analyst Scott Group downgraded Alaska Air to Peer Perform from Outperform without a price target. The analyst also lowered the firm’s Airline sector rating to Market Underweight from Market Weight. The airline Index has rallied 20% year-to-date, which provides an opportunity to take profits, the analyst tells investors in a research note. Wolfe says RASM trends are slowing, and most airline guides for the year are now baking in a re-acceleration in RASM at the same time as capacity growth accelerates and fuel prices fall. This seems "like an unlikely combination," so earnings risk is building again, contends the firm.