Ahead of quarterly results from the major U.S. carriers, Raymond James adjusted their outlook on certain carriers to reflect the elevated macro uncertainty in the airline industry, including weakness in off-peak leisure travel and the loss of momentum for corporate demand.

Among those singled out is United Airlines Holdings (NASDAQ:UAL) which was downgraded to Market Perform from Outperform. While Raymond James analyst Savanthi Syth sees the recent pullback in United (NASDAQ:UAL) stock as an overcorrection relative to the current environment where premium and long-haul international demand remain solid, United (NASDAQ:UAL) faces greater earnings risk should these segments start to falter. Instead, Syth prefers Delta Air Lines (DAL), which she rates as a Strong Buy.

Syth also gives high marks to Allegiant Travel Company (ALGT) which she upgrades to Strong Buy from Outperform given Allegiant’s (ALGT) "idiosyncratic earnings drivers" that should help offset any macro-driven headwinds. This also applies to Outperform-rated American Airlines Group (AAL), and Southwest Airlines (LUV).

While she sees better risk-reward elsewhere, Syth believes JetBlue Airways (JBLU) offers an “interesting opportunity for those looking to be nimble in the near-term due to extreme bearishness present in the stock.” Syth views JetBlue (JBLU) as a Market Perform airline stock.

After a string of losses reaching as many as six consecutive days in the red, airline stocks are modestly higher with the exception of Allegiant Travel Company (ALGT) up 6% on Tuesday’s upgrade.

In related news, United Airlines (UAL) becomes the first U.S. carrier to offer flights to Bangkok, Thailand, and Ho Chi Minh City, Vietnam with daily service beginning in October from Hong Kong.

Also beginning in October, United (UAL) will add a second daily flight between San Francisco and Manila, making the carrier the only U.S. airline to serve the Philippines. The carrier is also adding non-stop flights between the U.S. and Adelaide, Australia, complementing flights to Sydney, Brisbane, and Melbourne.