Goldman Sachs raises airlines' outlook, downgrades SkyWest on block hour guidance

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โดย Seeking Alpha·Read original
Summary · why it matters

Goldman Sachs raised its outlook on the airline industry, lifting its third-quarter and fourth-quarter 2026 net income forecast by 24% and 32% respectively, citing strong demand and a better competitive environment after Spirit ceased service in May. Analyst Catherine O’Brien raised price targets for several carriers, including Allegiant by 14% to $142, Alaska Air by 19% to $69, American Airlines by 50% to $15, Delta by 45% to $116, JetBlue by 28% to $4.50, Southwest by 17%, and United by 24% to $162. However, O’Brien downgraded SkyWest to Neutral from Buy and cut its price target by 14% to $108, warning that lower-than-expected industry capacity growth increases downside risk to SkyWest’s block hour production. She lowered her 2026 block hour growth forecast for SkyWest to 3.0% from 3.5% previously, and from 4.9% earlier this year, calling it a significant deceleration from recent years.

Impact on stocks 10

Industrials± Mixed · 8 stocks
SkyWest Inc
SKYW
▼ NegativeDemandrelevance

Downgraded to Neutral with price target cut 14% due to lower block hour growth forecast, indicating reduced demand for its services.

American Airlines Group
AAL
▲ PositiveDemandrelevance

Goldman Sachs raised price target by 50% to $15, citing strong demand and better competitive environment after Spirit ceased service.

Allegiant Travel Company
ALGT
▲ PositiveDemandrelevance

Goldman Sachs raised price target by 14% to $142, citing strong demand and better competitive environment.

Alaska Air Group Inc
ALK
▲ PositiveDemandrelevance

Goldman Sachs raised price target by 19% to $69, citing strong demand and better competitive environment.

Delta Air Lines Inc
DAL
▲ PositiveDemandrelevance

Goldman Sachs raised price target by 45% to $116, citing strong demand and better competitive environment.

JetBlue Airways Corp
JBLU
▲ PositiveDemandrelevance

Goldman Sachs raised price target by 28% to $4.50, citing strong demand and better competitive environment.

Southwest Airlines Company
LUV
▲ PositiveDemandrelevance

Goldman Sachs raised price target for Southwest by 17% citing strong demand and better competitive environment.

United Airlines Holdings Inc
UAL
▲ PositiveDemandrelevance

Goldman Sachs raised price target for United by 24% citing strong demand and better competitive environment.

Robotics & Physical AI▲ · 1 stocks
Financials▲ · 1 stocks

Off-coverage companies 1

Spirit AirlinesPrivate± Mixed
relevance

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