JP Morgan Publishes Report on Airlines

In its report, J.P. Morgan writes, “AMR capacity reductions are expected to divert revenue and increase profitability at its competitors. Our J.P. Morgan Shrink-o-lator explores these estimated benefits, driving substantial improvement to 2012 estimates and price targets… we remain confident AMR's filing will ultimately be recognized as a seminal event, serving to rekindle investor interest in the space. Combined with robust current demand trends and seasonal track record for Autumnal potential upside, risk/reward in US airlines has significantly improved – particularly in light of an anticipated surge in consensus as AMR capacity benefits become more widely understood.” Companies included in the J.P. Morgan report are: AMR Corp.

, Alaska Air Group

, Delta Air Lines

, JetBlue Airways Corp.

, Southwest Airlines Co.

, United Continental Holdings

, and US Airways Group