UPDATE: JP Morgan Raises PT to $19 on US Airways Group on Lower Fuel Cost, Higher Margins

JP Morgan reiterated its Overweight rating on US Airways Group

and increased its price target from $17 to $19. JP Morgan commented, "Higher completion factors lead to greater 2Q consolidated capacity, rising 1% vs. flattish expectations. In turn, consolidated ex-fuel CASM emerged at 2.2% vs. 3.0%, while RASM rose 6.9% vs. our 7.9% estimate. Coupled with lower fuel prices, guidance implies an operating profit of $397mm vs. our $384mm. Resulting 10.6% operating margin expected to rival that of LUV, exceed that of DAL (9.3%) and UAL (9.0%) though fall short of expected outcomes at JBLU (11.1%) and ALK (15.4%)." US Airways Group closed at $12.95 on Tuesday.