United and Other Airline Stocks Rally: More Gains Ahead
Airline Stocks Rally
United Airlines, Delta Air Lines and other major U.S. carriers saw their stocks rise early Wednesday as the sector finally moved past the Iran war. The industry effectively navigated turbulence by hiking airfares to offset surging fuel costs.
Demand Remains Strong
Earnings season revealed that travel demand remains insatiable despite higher ticket prices. With oil prices slumping in recent days and sinking toward $90 a barrel Wednesday, the sector looks set to erase its wartime losses.
ETF and Stock Performance
The U.S. Global JETS exchange-traded fund jumped 3.3% in early trading, on track to close above its pre-war level. United Airlines rose 6%, Delta Air Lines gained 5%. TD Cowen analyst Tom Fitzgerald raised price targets on United, Delta and American Airlines.
Cruise Stocks Also Climbing
Beaten-down cruise stocks also rebounded. Royal Caribbean rose 4%, Carnival gained 5%, and Norwegian Cruise Line Holdings jumped 6.6%.
Impacted Symbols
Symbols affected by this headline and their sentiment signals
Delta Air Lines, Inc.
Delta rose 5%, up 20% year-to-date, with an analyst price target of $92.
CCL PRODUCTS (I) LTD
The cruise sector is directly benefiting from the positive sentiment in airline stocks, with CCL rising 5%.
Norwegian Cruise Line Holdings Ltd.
Norwegian Cruise Line surged 6.6% following the news, showing the strongest performance in the sector.
Royal Caribbean Cruises Ltd.
Royal Caribbean rose 4% and turned positive for the year, but its upside potential is more limited compared to peers.
American Airlines Group, Inc.
American Airlines is directly impacted by the analyst's price target hike, with a 31% upside potential.
United Airlines Holdings, Inc.
United Airlines led the sector with a 6% gain; analyst price target of $150 implies 32% upside.
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