www.jpmorganmarkets.comNorthAmericaEquityResearch29July2019EquityRatingsandPriceTargetsMktCapRatingPriceTargetCompanyTicker($mn)Price($)CurPrevCurEndDatePrevEndDateAmericanAirlinesAALUS13,697.3430.74OWn/c40.00Dec-19n/cn/cDeltaAirLines,Inc.DALUS40,723.9262.46OWn/c78.00Dec-1970.00n/cUnitedAirlinesHoldingsIncUALUS24,425.2293.44OWn/c110.00Dec-19107.00n/cSouthwestAirlinesCo.LUVUS28,660.9652.88UWn/c52.00Dec-1951.00n/cAlaskaAirGroup,Inc.ALKUS7,951.5363.97OWn/c76.00Dec-1972.00n/cJetBlueAirwaysCorp.JBLUUS5,866.9919.44Nn/c21.00Dec-19n/cn/cSpiritAirlinesSAVEUS2,907.4342.37OWn/c54.00Dec-1972.00n/cSource:Companydata,Bloomberg,J.P.Morganestimates.n/c=nochange.Allpricesasof29Jul19.USAirlines2QWrap;SAVEOWreiterated,andno,wedon'tfeartheMAXreturnAirlines&AircraftLeasing/EquityJamieBakerAC(1-212)622-6713jamie.baker@jpmorgan.comBloombergJPMABAKERJ.P.MorganSecuritiesLLCAbdulTambal,CFA(1-212)622-0302abdul.tambal@jpmorgan.comJ.P.MorganSecuritiesLLCKaranPuri(91-22)6157-3327karan.puri@jpmchase.comJ.P.MorganIndiaPrivateLimitedSeepage28foranalystcertificationandimportantdisclosures,includingnon-USanalystdisclosures.J.P.Morgandoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.Earningsseasoncoveredabroaderspectrumofthemesthanweanticipated.Asexpected,guideswerebroadlyin-line,MAX-timingwasalignedclosertotheJ.P.Morganview,theindustrycontinuedtodemonstratemarginexpansionsuperiortotheS&P500,andSouthweststeeredclearwhenpressedonM&A.Ontheotherhand,Spirit’sguide(andsharepricecorrection)wasmeaningfullyworsethananythingwehadpondered,andSouthwestcommentaryregardingspillingtrafficandhelpingitscompetitorshasstokedfearsofpost-MAXfarewars.Whilethatlastpointmaypotentiallycastapalloverequitiesintheimmediateterm,weremainconfidentintheindustry'spost-MAXearningsprospectsandthepotentialabilityforstocks...
