1234 ET - U.S. airline stocks are due to keep rising from a combination of declining fuel prices, steady demand and an expected pullback in capacity for 3Q, UBS analysts Atul Maheswari and Thomas Wadewitz say in a research note. Jet fuel prices have declined 30% in the past month, and a 20% increase in fares hasn't put a dent in demand, they say. Capacity in 3Q is on track to shrink slightly from the same quarter a year earlier, the analysts say. Those factors should push 3Q EPS guidance above the current market consensus and driving upward earnings revisions, they say. That should maintain momentum for the sector's stocks, which have rallied 15% in the past two weeks. (dean.seal@wsj.com)
(END) Dow Jones Newswires
June 23, 2026 12:34 ET (16:34 GMT)
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