UBS has started covering multiple U.S. airlines and has highlighted the importance of supply and demand dynamics in influencing RASM growth and margin performance until 2025.

Alaska Air Group, Delta Air Lines, and United Airlines have been given Buy ratings due to their strong balance sheets and diverse income sources. On the other hand, American Airlines Group, Allegiant Travel Company, and Frontier Group Holdings have received Neutral ratings. Southwest Airlines and JetBlue Airways have been given Sell ratings due to concerns over Southwest's weak pretax margins and lack of revenue diversification, as well as JetBlue's challenges in achieving positive operating margins by 2025 and expected cash deficits until 2026.

UBS predicts an industry-wide pretax margin of 6.6% in 2025, which is an increase from 5.4% in 2024, driven by rising RASMs and potentially lower fuel costs. The firm forecasts a growth rate of 3.5-4.0% in U.S. industry passenger revenues for 2025 and 2026, aligning with the long-term average of 4%.