www.jpmorganmarkets.comNorthAmericaCorporateResearch28October2019EquityRatingsandPriceTargetsMktCapRatingPriceTargetCompanyTicker($mn)Price($)CurPrevCurEndDatePrevEndDateAlaskaAirGroup,Inc.ALKUS8,879.4871.57NOW76.00Dec-2079.00n/cAmericanAirlinesAALUS13,652.4930.86OWn/c43.00Dec-2040.00n/cDeltaAirLines,Inc.DALUS35,380.8054.60OWn/c78.00Dec-20n/cn/cJetBlueAirwaysCorp.JBLUUS5,551.0818.76OWN24.00Dec-2023.00n/cSouthwestAirlinesCo.LUVUS30,299.1656.74UWn/c54.00Dec-2058.00n/cSpiritAirlinesSAVEUS2,599.9137.93OWn/c51.00Dec-20n/cn/cUnitedAirlinesHoldingsIncUALUS23,523.9991.64OWn/c123.00Dec-20122.00n/cSource:Companydata,Bloomberg,J.P.Morganestimates.n/c=nochange.Allpricesasof25Oct19.USAirlines3QWrap;ALKdowngraded,JBLUupgraded;sentimentimprovingAirlines&AircraftLeasing/EquityJamieBakerAC(1-212)622-6713jamie.baker@jpmorgan.comBloombergJPMABAKERAbdulTambal,CFA(1-212)622-0302abdul.tambal@jpmorgan.comJ.P.MorganSecuritiesLLCSeepage32foranalystcertificationandimportantdisclosures.J.P.Morgandoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.Sentimentwasalreadyonthemend,inourview,butearningsseasonprovidedanothershotinthearm:AALcameoutswinging,JBLUofferedRASMreassurances,LUVwasn’tshyaboutitscostchallenges,andSAVEguidedup,tonameafew.Mostimportantly,domesticcapacitysentiment(sinceoutcomesremainfarfromcertain)improvedgivenfurtherMAXdelaysandplansforamoretemperedreturntoservicethanmanyhadfeared.Buteconomicuncertaintystillremains,sowe’vealsoupdatedourrecessionaryanalysis;itlooksOK,butnotasstrongasin2016.Turningtoratings,ALK’ssurgetowardsour$76targethasleftlimitedforecastedupsidepotential,whichnudgesourratingfromOverweighttoNeutral.Meanwhile,JBLU–stillfarfromasell-sidefavorite–isnowexpected(byus)tolimpacrossthe$2.50earningslinein2020.Evenwhencoupledwithoursecondlowesttargetmulti...
