In a new report, JP Morgan analyst Jamie Baker explained why investors’ patience with airline stocks is running thinner than the air at cruising altitude. The firm has now lowered its projections for industry numbers in 2016 and 2017, and it has downgraded shared of JetBlue from Overweight to Neutral.

The Numbers

JP Morgan has lowered its 2016 RASM growth projections for the airline industry from +1.3 percent to -2.0 percent. Capacity growth (3.0 percent) and EBIT margins (about 17.0 percent) for 2016 remain unchanged.

For 2017, the firm is calling for flat RASM growth, 3.0 percent capacity growth and a 1.0 percent decline in margins.

The Good News

Baker pointed out…

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