Wells Fargo hikes PTs of U.S. airlines citing easing costs, tighter capacity

American Airlines

Today 13:58

** Wells Fargo raises price targets on U.S. airlines 
** Brokerage says the Iran conflict initially triggered a sharp spike in jet fuel prices, prompting airlines to implement about seven fare increases in rapid succession as carriers moved largely in tandem to offset higher fuel costs
** Adds reduced industry capacity is also accelerating market rationalization, including the likely liquidation of Spirit Airlines
** Notes the steady decline of fuel prices since early April position airlines to quickly recoup related costs, boost profitability and improve the sector's longer-term earnings outlook
     
Companies
New PT
Old PT
Rating
American Airlines 
$17
$12
Equalweight
Delta Air Lines
$105
$75
Overweight
Southwest Airlines
$50
$44
Equalweight
United Airlines
$165
$130
Overweight
     

(Reporting by Megavarshini G. Somasundaram in Bengaluru)
((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))