Cowen predicts lower earnings for airlines

   Airlines’ first-quarter earnings may be lower than expected due to higher fuel costs, flight cancellations and weather disruptions, according to a report from Cowen and Company, which has updated its predictions.
   “We still remain positive on the group, but admit we could see lower 1Q14 earnings as a result of these issues,” the report said.
   It reported that indications show that jet fuel will be $2.99 a gallon in the second quarter and down to $2.87 in the fourth quarter.
   “We are most concerned with American Airline Group and United Continental as they cancelled the most flights,” it said. “United has already raised their jet fuel expectations for 1Q14, which is likely to squeeze margins.”