American, Delta And United Stocks Soar After Deutsche Bank Turns Bullish

Shares of American Airlines Group Inc. , Delta Air Lines Inc. and United Continental Holdings Inc. soared Tuesday, after Deutsche Bank turned bullish on the major air carries. Analyst Michael Linenberg upgraded all three carriers to buy from hold, on the belief that all the known macro and industry headwinds, such as Brexit, lackluster global economic growth and over-supplied markets, "are more than fully discounted" in share prices. He said what doesn't seem to be reflected in the stocks is the likely near-term improvement in passenger revenue per available seat mile (PRASM). "Moderating capacity growth, strengthening of key currencies--save for the British pound--higher fuel surcharges and a decent U.S. economic backdrop should collectively result in less negative PRASM/RASM," Linenberg wrote in a note to clients. Shares of American ran up 11%, Delta surged 5.5% and United climbed 8.8%. Those stocks were still down 18%, 21% and 19%, respectively, year to date. Those stocks' rallies helped support other air carrier stocks. Shares of JetBlue Airways Corp. hiked up 4.5% and Southwest Airlines Co. jumped 4.4%.