02:26 PM EDT, 08/20/2014 (MT Newswires) -- The S&P 500 Airline Index is up 2% in a mixed industry showing in Wednesday afternoon trading amid continued lower oil prices and a rating upgrade for JetBlue.
Zachs Investment Research notes the recent 14-month low in Brent crude is a positive for these companies as this means lower fuel costs, which should boost profitability. Lower oil prices have been a result of easing concerns regarding supply as conflicts settle down in Iraq and Ukraine and as Libya increases its oil production. In Wednesday afternoon trading, crude oil for October delivery was slightly higher at $93.29 a barrel, but still near a seven-month low. Also featured in the Zach Analyst's posting today are three airline stocks with favorable coverage, including United Continental Holding (UAL), Southwest Airlines (LUV )
and Spirit Airlines (SAVE) . Jet Blue on Wednesday was upgraded by analysts at Cowen to an outperform rating from market perform. The firm also raised its price target on the airline by 50% to $15 from $10 a share.
LUV and JBLU are breaking to new highs. It looks like UAL is going to do it too. DAL and HA are perking up. ALK and AAL are lagging a bit. But despite lagging, if most of the group starts breaking to new highs ... there is a good chance all will, especially if it is due to reasons that benefit the industry such as fuel and a stronger economy.