Investors and executives can benefit from our ongoing research and consultation designed specifically to support investment decision-making in the transportation sector. 

Our service includes research notes/presentations and conference calls that proactively analyze the key drivers of revenue and earnings. The topics covered include industry fundamentals, macro factors/forces, and company-specific operating statistics and financials.  We focus on those areas where we believe consensus expectations are wrong and then tie everything together to deliver the most accurate, up-to-date valuation of the airlines. 

More specifically, our service provides:

  • A full overview and analysis of industry trends and fundamentals, including capacity (flights, seats, ASMs, and block hours), demand (RPMs, passengers and economic drivers for key US, Atlantic, Pacific, and Latin markets), and freight and ancillary revenues;
  • Detailed analysis of operating expenses, including fuel, labor, fleet, and maintenance issues and estimates of expected changes;
  • Company- and industry- level earnings, and cash flow estimates with a focus on where we believe the consensus is right or wrong;
  • Valuation discussions and projections are updated as key cost and revenue estimates are revised. Integral to this process is identifying investment horizons that work best for successful investments in the sector and for individual airlines;
  • Focused reports on macro- and micro-drivers of investment attractiveness, including fiscal policy impact, industry concentration, fleet dynamics, and the outlook for revenues and both fixed and variable costs. 

    We employ in our work a unique methodology that delivers robust airline city-pair, airport, fleet, and supply and demand analyses on very large data sets.  This process provides detailed expense and revenue estimates on each airline and the industry as a whole. We combine this bottom-up approach with our top-down analysis to provide a more robust set of scenarios and forecasts.  

    The Valuation Series

    Our core product focuses on a set of updated estimates of individual airline's equity and enterprise values. Also included, are the building blocks of the valuation work: operating statistics and key cost and revenue projections, all within a clearly articulated set of assumptions about various states of the world. Those assumptions include key macro- economic variables and fuel costs.

    Please contact us for pricing.  Our Top 10 Reasons offers additional details about our research support services.