Dahlman Rose Updating Estimates On US Airways Group (LCC)

Dahlman Rose & Co. analyst Helane Becker raised estimates on US Airways

, as did the company's management today, to reflect lower operating expenses. It rates shares at Buy, with a $14 price target. In the research note, Becker writes, "This morning management provided an update to US Airways 3Q10 guidance. Management continues to be disciplined with capacity growth, with mainline expected to be up 1%, domestic capacity down 1% and international capacity up 8%. Fuel prices are now expected to be in a range of $2.15 - $2.20, down slightly from previous guidance. Operating expenses excluding fuel is expected to be flat to down 2%, previous guidance was down 1% to up 1%. With revenues continuing to climb back towards 2008 levels and costs held in check, US Airways will be profitable for 2H10." Shares of LCC gained 11 cents today to close at $9.23, a gain of 1.2%.