BUZZ-Jefferies lowers PT on US airlines as fuel prices surge
Reuters03-12
BUZZ-Jefferies lowers PT on US airlines as fuel prices surge
** Jefferies cut price target on U.S. airlines after jet fuel prices jumped about 50% on Middle East tensions
** Brokerage says higher fuel prices will squeeze airline profits because fares were set assuming cheaper fuel
** Adds if prices stay high, airlines may see weaker demand or cut flights
** Brokerage also raises near-term 2026 jet fuel estimates but assumes prices fall back to pre-war levels in the second half, lifting full-year fuel costs by about 11% on average
** As of last close, Dow Jones U.S. airlines index .DJUSAR had fallen 15.1% YTD
Companies
New PT
Old PT
American Airlines
$12
$15
Delta Air Lines
$72
$84
Southwest Airlines
$41
$48
United Airlines
$125
$148
(Reporting by Apratim Sarkar in Bengaluru)
((Apratim.Sarkar@thomsonreuters.com))
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