"Airlines show 23% average upside potential on an aggressively conservative approach to modeling fuel benefits. Our upside case, which assumes fuel stays low through 2016 with much more limited revenue offset, shows about 65% upside to coverage," analysts said.
"Fundamentally, the U.S. airlines stand to see about $10 billion decline in fuel costs in our 2015 outlook. We can debate how much will flow fully to earnings, but the potential remains substantial put against our $14.5 billion pre-tax earnings estimate for 2014," analysts added.
Shares of American Airlines are up 1.86% to $49.21 in pre-market trading.AAL data by YCharts