Another Hurdle Cleared; Positive 3Q Setup for Airlines

Research evidence excerpt

Another Hurdle Cleared; Positive 3Q Setup for Airlines

Travel | Airlines

June 25, 2026

Duane Pfennigwerth Another Hurdle Cleared; Positive 3Q Setup

212 497 0817 for Airlines duane.pfennigwerth@evercoreisi.com

Jacob Gunning Summary: The rare combination of strong pricing

212 446 9450 momentum + rapidly declining spot fuel prices has driven

jacob.gunning@evercoreisi.com

a powerful recovery rally in Airlines. Sharply lower fuel, Peter Laskey

212 653 9043 while welcome, actually distracts from the strength and

peter.laskey@evercoreisi.com rapidity of the industry’s response to its most recent

challenge. We weren’t planning on another Airline industry

Upcoming Industry Events “proof point” entering this year, but investors got one

DAL 2Q Earnings 07/10 anyway. The competitive position for leading franchises

AERO 2Q Release 07/13 such as Delta and United remains very favorable, and

AERO 2Q Call 07/14

UAL 2Q Release (Tentative) 07/15 merits continued longer-term relative value discovery vs.

UAL 2Q Call (Tentative) 07/15 other transportation sectors.

RYAAY F1Q Earnings 07/20

VLRS 2Q Release (Tentative) 07/21 We’re broadly raising ’26 estimates, slightly raising ’27.

VLRS 2Q Call (Tentative) 07/22 We note most 2Q revenue guides were provided a week ALK 2Q Release (Tentative) 07/22

LUV 2Q Release 07/22 or two before Spirit’s shutdown. Additionally, fuel prices

ALK 2Q Call (Tentative) 07/23 started to moderate late in the quarter (most airlines carry

LUV 2Q Call 07/23

AAL 2Q Earnings (Tentative) 07/23 ~2 weeks of fuel inventory). Street estimates will continue

SKYW 2Q Earnings (Tentative) 07/23 to trend higher in the lead-up to earnings, which kick off

JBLU 2Q Earnings (Tentative) 07/28 July 10th with Delta. ULCC 2Q Earnings (Tentative) 07/28

ALGT 2Q Earnings (Tentative) 08/04