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StocksUpdated×2•Originally published 12 April 2026•Updated 14 April 2026•

1 min read

Barclays, JPMorgan Maintain Overweight on Aeromexico Despite Fuel Price Uncertainty

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Key Facts

1Barclays and JPMorgan maintained Overweight ratings on Grupo Aeroméxico (AERO) despite cutting price targets due to limited visibility on jet fuel prices and market volatility.

2Barclays sees 59% upside potential and JPMorgan sees 78% upside potential from current price levels.

Barclays and JPMorgan have maintained their Overweight ratings on Aeroméxico (AERO) despite reducing price targets, while Volaris (VLRS) has been rated as a high-risk 'Buy' with a $10.43 price target, implying a 35% upside potential. A planned merger between Volaris and Viva Aerobus is expected to create a 50/50 ownership structure to strengthen their combined competitive positioning. However, Volaris faces headwinds from high oil prices and inflation, which are projected to reduce its EBITDAR by 10% and free cash flow by 19.1%. This follows an upgrade for Southwest Airlines (LUV) to 'Buy' with a bullish price target of $53.52. These combined analyst actions underscore a growing confidence in the aviation sector's ability to navigate input cost volatility through aggressive cost-management, pricing strategies, and strategic consolidation.

about 2 months ago

Version History

1 additional source confirmed this story

Version 2about 2 months ago

What changed: Added details regarding Volaris (VLRS) high-risk buy rating, its planned merger with Viva Aerobus, and the projected impact of fuel costs on its financial metrics.

Version 1about 2 months ago

What changed: The story was expanded to include the upgrade of Southwest Airlines (LUV) to 'Buy' and detailed the company's strategic measures to combat fuel and inflationary pressures.