Air travel passenger numbers are expected to soar to a new record high in 2025, according to projections from the International Air Transport Association (IATA). After Raymond James upgraded American Airlines (AAL) and lifted its price target, the firm’s managing director, Savanthi Syth, joins Morning Brief with Madison Mills and Seana Smith to discuss her outlook for the airline industry in the new year.

“What we see here is a generally a kind of demand environment that’s holding. It will really depend on the economy, but there’s also just in the industry itself some capacity discipline that’s coming in to help rightsize some overcapacity that we saw in 2024,” Syth says.

“We see a kind of a good setup here overall” for American Airlines, the analyst says, noting that the combination of “a good industry backdrop and some self-help from American” will help the company.

Despite her bullish shift on American Airlines, Syth maintains Delta Air Lines (DAL) as her top pick in the space: “From a risk-reward standpoint, they’re really well positioned.”

To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.

This post was written by Naomi Buchanan.

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