Mar. 12 at 3:49 PM
Citigroup placed Delta Air Lines and SkyWest on 30-day positive catalyst watch, arguing that the recent macro shock and jet-fuel volatility are increasingly priced into airline stocks.
Analysts said both carriers are relatively resilient to fuel-price swings. SkyWest has limited exposure because fuel costs are passed through for about 90% of its capacity under its contract-flying model. The bank also highlighted strong travel demand, a share-buyback program, and an estimated ~14% pretax margin for FY2025. Citi’s
$112 price target implies about 23% upside.
For Delta, roughly 75% of fuel consumption is effectively hedged through its Trainer refinery, reducing sensitivity to fuel-price spikes. Citi also cited the airline’s industry-leading ~8.5% pretax margin, profit-sharing structure, and strong Atlantic exposure benefiting from rerouted travel flows. Its
$87 target price suggests about 47% upside.
$DAL $SKYW $C