Fuel costs remain a key watchpoint for airlines as TD Cowen assesses the sector's 2027 earnings and free-cash-flow outlook.

  • TD Cowen lowered its price target on Alaska Air to $44 from $46, Delta to $101 from $105 and United to $167 from $192, while maintaining 'Buy' ratings on all three stocks, TheFly reported.
  • The firm said fuel prices remain a 'rollercoaster' and continue to cloud the outlook for airline earnings and free cash flow in 2027.
  • Alaska is reportedly expanding its premium and international operations, including plans for at least 15 intercontinental destinations from Seattle by 2030.

Airline stocks were in focus on Friday as TD Cowen lowered its price targets on Alaska Air Group Inc. (ALK), Delta Air Lines Inc. (DAL) and United Airlines Holdings Inc. (UAL) while maintaining 'Buy' ratings on all three stocks as part of a third-quarter earnings preview. 

ALK, DAL stocks were trading marginally lower, while UAL stock was trading marginally higher, at the time of writing on Friday.

TD Cowen Cuts Targets Across Airline Group

TD Cowen lowered its price target in a third-quarter earnings preview for the airline group, according to TheFly.

Along with Alaska, the firm lowered its price target on Delta Air Lines to $101 from $105 and United Airlines to $167 from $192. TD Cowen maintained 'Buy' ratings on all three stocks. The firm said fuel prices remain a 'rollercoaster' and continue to cloud the outlook for earnings and free cash flow in 2027.

The firm said it prefers shares of United and Delta, while acknowledging that more leveraged airlines could outperform in a technically driven rally should fuel prices normalize, Fly reported.

Alaska Expands Premium, International Operations

Separately, Alaska is expanding its premium and international operations as it builds out its long-haul network from Seattle, Reuters reported.

The report stated that Alaska plans to expand its intercontinental destinations from Seattle to at least 15 by 2030, up from seven currently. Alaska plans to launch service to Paris and Athens in spring 2027, according to Reuters.

The expansion is part of Alaska's broader strategy to generate more revenue from premium cabins, international travel and its loyalty program, it said.

Retail View On ALK, DAL, UAL

On Stocktwits, retail sentiment around ALK remained ‘Extremely Bullish’ with ‘High’ message volume over the past 24 hours. Sentiment around DAL was ‘Bullish’ with ‘High’ message volume, while UAL was also ‘Bullish,’ with ‘Normal’ message volume.

ALK shares are down nearly 22% year-to-date, and UAL shares are down roughly 1% while DAL shares are up nearly 20%.

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