Markets & Finance

Raymond James Cuts Atlantic Coast Air Rating

Raymond James downgraded Atlantic Coast Airlines (ACAI) to market perform.

Analyst James Parker says he's less uncertain about Atlantic Coast's growth outlook, since it has not signed a memorandum of understanding with United and a large amount of United's regional jet growth is allocated to SykWest and Mesa Air -- rivals to Atlantic Coast.

Parket also cut the $1.20 2004 earnings per share estimate to $1.00, due to a lack of confidence that Atlantic Coast will be able to get additional regional jets beyond the six 50-seat regional jets currently scheduled for delivery in 2004. Although he thinks Atlantic Coast will reach a new contract with United, he's now less certain about the potential for incremental regional jet growth beyond 2004 and 2005.

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