J.P. Morgan raises its airline outlook

WASHINGTON (MarketWatch)
Investment firm J.P. Morgan raised its financial outlook for airlines on Thursday following the decision by American Airlines parent AMR Corp. to reorganize under bankruptcy.
"We are modeling for a 10% AMR capacity cut, which is expected to divert 6%, or about $1.4 billion of revenue," the firm said in a note to clients.
"This equates to 1% to 3% revenue improvement per competitor in 2012."
 J.P. Morgan raised the 2012 profit outlook for US Airways to $2.26 a share from $1.72, and a new price target of $12.50; United Continental was upped to $6.97 a share from $5.71, with a price target of $45; and JetBlue Airways was raised to 60 cents a share from 39 cents, with a price target of $9.
The price target for Delta Air Lines was raised to $17.50