BofA sees Delta, United entering a rare airline sweet spot

Analyst
โดย TheStreet·Read original
Summary · why it matters

Bank of America has raised price targets across the airline sector, citing steady demand, stronger fares, and reduced fuel costs that may support greater profitability into second-quarter results. The brokerage lifted its target for Delta Air Lines to $100 from $93 and for United Airlines Holdings to $150 from $145, while also boosting objectives on American Airlines, Southwest, Alaska Air, JetBlue, Frontier, and Allegiant. BofA now expects Delta's second-quarter unit revenue growth of 13.4% and third-quarter unit sales growth of 14.7%, with adjusted diluted EPS for 2026 estimated at $6.50, the low end of Delta's guidance range. For United, the firm projects second-quarter unit revenue growth of 13.5% and third-quarter growth of 15.6%, raising its 2026 EPS forecast to $11.15. The call is supported by airfare data showing a 26.7% year-over-year surge in May and a 15% increase in travel agency ticket sales, while jet fuel prices have declined roughly 35% from early April highs. However, BofA warns that domestic capacity is expected to rise 3.9% in October and 6.9% in November, which could erode unit-revenue gains if airlines do not remain disciplined.

Impact on stocks 10

Industrials▲ · 8 stocks
Delta Air Lines Inc
DAL
▲ PositiveCapitalrelevance

BofA raised price target to $100 from $93, citing steady demand, stronger fares, and reduced fuel costs; also provided EPS estimates.

United Airlines Holdings Inc
UAL
▲ PositiveCapitalrelevance

BofA raised price target for United to $150 and increased EPS forecast, supported by demand and lower fuel costs.

American Airlines Group
AAL
▲ PositiveCapitalrelevance

BofA raised price target for American Airlines, citing steady demand, stronger fares, and reduced fuel costs.

Allegiant Travel Company
ALGT
▲ PositiveCapitalrelevance

BofA raised price target for Allegiant, citing steady demand, stronger fares, and reduced fuel costs.

Alaska Air Group Inc
ALK
▲ PositiveCapitalrelevance

BofA raised price target for Alaska Air, citing steady demand, stronger fares, and reduced fuel costs.

JetBlue Airways Corp
JBLU
▲ PositiveCapitalrelevance

BofA raised price target for JetBlue, citing steady demand, stronger fares, and reduced fuel costs.

Southwest Airlines Company
LUV
▲ PositiveCapitalrelevance

BofA raised price target for Southwest, citing steady demand, stronger fares, and reduced fuel costs.

Financials▲ · 1 stocks
Others▲ · 1 stocks
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