Jet Fuel Prices Are Crashing, and These Airline Stocks Could Benefit Most

Industry
โดย GuruFocus·Read original
Summary · why it matters

UBS said U.S. airline stocks are likely to shift back toward company-specific fundamentals after a macro-driven rally, as jet fuel prices fell 13% over three sessions and are about 40% below April peaks. The bank flagged a valuation gap between Delta Air Lines and United Airlines, noting Delta trades at more than twice United's 2027 earnings multiple, and said that spread could narrow if United's valuation improves while lower fuel prices support earnings. For more direct fuel exposure, UBS pointed to Alaska Air Group and American Airlines Group, estimating that a 10-cent drop in fuel prices would lift 2027 earnings per share by 13% for Alaska and 16% for American, versus smaller gains for Delta, United and Southwest Airlines. UBS kept Buy ratings on Delta, United, American and Alaska, while warning that higher valuations will likely require revenue strength, not just cheaper fuel.

Impact on stocks 6

Industrials▲ · 5 stocks
American Airlines Group
AAL
▲ PositiveSupplyrelevance

Jet fuel prices dropped 40% from April peaks; UBS estimates a 10-cent drop lifts 2027 EPS by 16% for American.

Alaska Air Group Inc
ALK
▲ PositiveSupplyrelevance

Jet fuel prices dropped 40% from April peaks; UBS estimates a 10-cent drop lifts 2027 EPS by 13% for Alaska.

Delta Air Lines Inc
DAL
▲ PositiveSupplyrelevance

Jet fuel prices dropped 40% from April peaks; UBS notes Delta trades at higher multiple but also benefits from lower fuel costs.

United Airlines Holdings Inc
UAL
▲ PositiveSupplyrelevance

Jet fuel prices dropped 40% from April peaks; UBS flags valuation gap with Delta and says lower fuel supports United's earnings.

Southwest Airlines Company
LUV
▲ PositiveSupplyrelevance

Jet fuel prices dropped 40% from April peaks; UBS mentions Southwest benefits from lower fuel, though less than Alaska/American.

Financials▲ · 1 stocks
© 2026 MarketDXNews