Alaska Air expects Boeing 737 MAX 10 certification by end-September

UBS raised its price target for Delta Air Lines (DAL) to $105 from $99, maintaining a Buy rating. The firm cites strong demand and pricing power but notes fuel price spikes may cut estimates. This update comes ahead of Q3 results.

Redburn upgraded Southwest Airlines (LUV) to Neutral, raising its price target to $40. The firm cited valuation improvements and stronger-than-expected ancillary revenue growth. Redburn maintains Buy ratings on Delta (DAL) and United (UAL), favoring their international networks and capacity discipline. Institutional interest increased for all three carriers, with Southwest having the highest short interest.

Delta Air Lines is investing $2.3 billion to expand its hub at Los Angeles International Airport (LAX), aiming for 200 daily flights to nearly 70 destinations by summer 2027. New routes include Philadelphia and Monterey, with increased frequencies to major cities. The investment focuses on premium facilities, including expanded Sky Clubs and Delta One suites on Airbus A350-900s. LAX is also being positioned as a gateway to Asia and Oceania, with new routes to Hong Kong, Shanghai, and Manila.

Redburn reiterated Buy ratings on Delta (DAL) and United (UAL), upgrading Southwest (LUV) to Neutral, citing strong demand and unit revenue growth. The firm raised jet fuel cost forecasts but expects 2027 earnings to exceed consensus for DAL and UAL, with target prices of $105 and $150, respectively. LUV's target is $40.

Rothschild & Co raised price targets for American Airlines (AAL) to $13.50, Delta Air Lines (DAL) to $105, and lowered United Airlines (UAL) to $150, citing strong domestic revenue trends. The firm expects capacity constraints and premium demand to support unit revenues. The FAA is deploying a new AI-powered air-traffic system, Smart, developed by Air Space Intelligence.

Rothschild & Co Redburn increased its price target for Delta Air Lines (DAL) to $105 from $104, maintaining a Buy rating. The firm cites a strong airline sector, capacity constraints, and premium demand strength as reasons for optimism about domestic unit revenue growth. According to the firm, softer low-cost competition will support this expansion into next year.