U.S. Airlines Jump Most Since 2014 as Deutsche Bank Says Buy
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Shares are set to rise after first-half rout, Linenberg says
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American, United lead index after reporting positive news
U.S. airlines surged by the most since late 2014 after Deutsche Bank AG recommended buying shares in the three largest carriers.
American Airlines Group Inc., Delta Air Lines Inc. and United Continental Holdings Inc. will rebound as they advance “in fits and starts” toward halting a slide in passenger revenue for each seat flown a mile, a key industry benchmark, Michael Linenberg, an analyst at Deutsche Bank, said in a report Tuesday. The industry is poised to benefit from slowing capacity growth, currency shifts and a decent economy, he said.
The stock-market rally is giving investors a boost after a first half in which the Bloomberg U.S. Airlines Index was on track for the biggest annual decline in five years, dragged down by fare weakness, too much capacity and economic uncertainty from the U.K.’s vote to leave the European Union. Carriers could snap back quickly if they show signs of improved earnings, Linenberg said…
U.S. Airlines Jump Most Since 2014 as Deutsche Bank Says Buy
