The Globe and Mail reports in its Friday edition that Canadian airlines have a "low margin for error," says Macquarie analyst Konark Gupta in a research note released Thursday. The Globe's David Leeder writes in the Eye On Equities column that Mr. Gupta says: "We maintain our neutral view on the sector as 'medium-term' risks that drove our July downgrade remain in place. In particular, we see risk to demand and cost outlook heading into 2018 due to Macquarie's below-consensus views on the Canadian GDP and CAD, while upcoming competition could impact RASM. Fuel outlook appears stable. Meanwhile, [Air Canada] and [WestJet] have been hitting new all-time and 52-week highs, respectively, on strong demand trends and CAD tailwind. They could continue to outperform in the immediate term on potential earnings beat. Within the sector, we continue to prefer AC over WJA based on their domestic exposures, leverage outlook, and WJA's labour and ROIC [return on invested capital] risks." Mr. Gupta continues to rate WestJet Airlines "underperform." He hiked his share target by a buck to $25. Canaccord Genuity analyst Doug Taylor reiterated his "hold" call on WestJet in the Eye column on Aug. 3. WestJet was then worth $25.29.