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BMO projects brighter 2026 for US airlines as it initiates coverage

ReutersDec 9, 2025 1:26 PM

BMO initiates coverage on U.S. airlines on the back of improving demand and renewed corporate travel activity

Brokerage says following a slowdown in 2024 and softer corporate travel in 2025, the industry is poised for a more constructive outlook in 2026

Unlike railroads and trucking, airlines have struggled to turn margin gains into durable valuation growth due to their cyclical nature, says BMO

YTD, S&P 500 Passenger Airlines index .SPLRCALI up 10.4%

Company

PT

Rating

Delta Air Lines

$80

Outperform

American Airlines

$16.75

Market Perform

Southwest Airlines

$43

Market Perform

United Airlines

$125

Outperform

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