Big 3 U.S. Airlines Continue Lower on Brexit Fears (AAL) (UAL) (DAL)

After falling 8% - 11% on Friday on Brexit, the three major U.S. airlines have continued to see pressure Monday as fears linger and analysts put pen to paper. Today's downside follows the International Air Transport Association (IATA) warning about a 'permanent downward shift' in UK passenger volumes of 3% - 5% by 2020 following the Brexit vote.

American Airline (NYSE: AAL) is down another 6.2%, United Continental (NYSE: UAL) is down another 8.2% and Delta Air Lines (NYSE: DAL) is down another 5.2%.

The UK market for 2016 represents 6.3% of American’s capacity, 5.4% of United’s and 2.8% of Delta's (6.7% if you give DAL credit for half of Virgin Atlantic’s US – UK capacity), according to Deutsche Bank analyst Michael Linenberg.

Deutsche Bank is recommending investors go to domestic names such as Hawaiian Holdings (NASDAQ: HA), JetBlue Airways (NASDAQ: JBLU), Southwest Airlines (NYSE: LUV) and Spirit Airlines (NASDAQ: SAVE), and today upgraded Hawaiian Holdings to Buy.

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