Bank of America lifts airline stock targets on expectations of steady demand and lower fuel costs supporting profitability.
Bank of America increased its price targets for Delta Air Lines (DAL) and United Airlines Holdings (UAL) to $100 and $150, respectively, citing stronger fares and reduced fuel expenses. The brokerage also raised targets for other carriers, anticipating improved second-quarter results amid tight summer capacity.
Delta will report June quarter earnings on July 10, with United following on July 16. While demand remains robust, BofA warned that rising capacity later in 2026 could pressure unit revenue beyond the peak travel season.
The move reflects optimism that airlines may navigate fuel volatility better than expected, though risks persist as industry dynamics shift post-summer.