Wall Street sent a coordinated bullish signal to the airline sector as Goldman Sachs analyst Catherine O’Brien and TD Cowen analyst Tom Fitzgerald raised their price targets across most major U.S. carriers. Goldman lifted its targets on shares of Delta Air Lines (NYSE:DAL | DAL Price Prediction), United Airlines (NASDAQ:UAL), Alaska Air Group (NYSE:ALK), American Airlines (NASDAQ:AAL) and JetBlue Airways (NASDAQ:JBLU), while TD Cowen raised its targets on shares of American and Southwest Airlines (NYSE:LUV). These analysts see improving revenue and easing fuel costs, though the two firms disagree on American Airlines stock.
| Ticker | Company | Firm | Action | Old Rating | New Rating | Old Target | New Target |
|---|---|---|---|---|---|---|---|
| DAL | Delta | Goldman Sachs | PT raise | Buy | Buy | $80 | $116 |
| UAL | United | Goldman Sachs | PT raise | Buy | Buy | $131 | $162 |
| ALK | Alaska | Goldman Sachs | PT raise | Buy | Buy | $58 | $69 |
| AAL | American | Goldman Sachs | PT raise | Sell | Sell | $10 | $15 |
| JBLU | JetBlue | Goldman Sachs | PT raise | Sell | Sell | $3.50 | $4.50 |
| AAL | American | TD Cowen | PT raise | Buy | Buy | $20 | $24 |
| LUV | Southwest | TD Cowen | PT raise | Buy | Buy | $47 | $53 |
The Analysts’ Case for Airline Stocks
Goldman’s O’Brien cited higher estimates on stronger revenue trends and lower fuel prices, with demand momentum continuing despite significant fare increases that began in March. Meanwhile, TD Cowen’s Fitzgerald framed his Q2 2026 preview as “broadly constructive,” assuming carriers hold this year’s fare hikes, though he cautioned that investors will likely need confirmation that demand stays robust for shares to extend gains.
WTI crude oil sits at $68.15 per barrel, down 21% from a month earlier and well off April’s $114.58 spike, easing costs for the group.
Company Snapshot
Delta posted Q1 2026 adjusted EPS of $0.64 on revenue of $14.2 billion, with premium ticket revenue up 14%. United beat estimates with adjusted EPS of $1.19 and guided full-year 2026 EPS to $7 to $11.
Southwest reported Q1 revenue of $7.249 billion, and CEO Bob Jordan called it “a turning point for Southwest.” American’s Q1 loss of $0.40 per share beat expectations, but the company’s balance sheet carries $34.7 billion in debt and negative stockholders’ equity of $4.1 billion.
Why the Move Matters Now
The tension here pertains to American Airlines stock. Goldman’s $15 Sell target sits below the current quote at around $18, implying downside, while TD Cowen’s $24 Buy target implies upside. Goldman’s Sell-rated American and JetBlue both carry targets below current prices, while its Buy-rated Delta, United and Alaska imply room to run.
Delta stock is up 34% year to date (YTD), United shares 20%, and Southwest stock 22%. Delta stock trades at a P/E ratio of 14x and United at 12x, modest for legacy carriers.
What It Means for Your Portfolio
For diversified sector exposure without single-name risk, the U.S. Global Jets ETF (NYSEARCA:JETS) bundles these carriers at an expense ratio of 0.6%. The ETF is up 18% YTD.
Airlines remain highly cyclical and sensitive to fuel prices and travel demand. University of Michigan consumer sentiment fell to 44.8 in May, a level that could pressure discretionary travel spend. Investors should consider sizing their airline exposure modestly given volatility.
Analyst ratings are opinions, not guarantees, and the split view on American Airlines stock shows reasonable analysts can reach opposite conclusions on the same balance sheet. The bullish tape on Delta, United, Alaska and Southwest gives long-term investors a clearer runway, provided demand and fuel cooperate.
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