United and American Lead Airline Shares to Two-Month High
- Skepticism in United ‘is too negative,’ says hedge fund CEO
- American boosts outlook on higher fares, lower fuel costs
A passenger views a departures board inside the United Continental Holdings Inc. terminal at Newark Liberty International Airport (EWR) in Newark, New Jersey, U.S., on Wednesday, April 12, 2017. United Airlines is under fire for forcibly removing a passenger from a plane in Chicago shortly before departure to make room for company employees, an incident which demonstrates how airline bumping can quickly veer into confrontation.
Photographer: Tim Fadek/BloombergU.S. airlines climbed to a two-month high after beleaguered United Continental Holdings Inc. won support from one of its biggest shareholders and American Airlines Group Inc. signaled that it’s gaining additional control over fares.
United shares could jump to $135 by 2020, or even higher under certain circumstances, said Brad Gerstner, chief executive officer of Altimeter Capital Management. Altimeter holds 3.3 percent of the carrier’s stock, the hedge fund’s top holding, and helped lead a proxy fight that overturned part of the airline’s board last year.