Analysts tout better outlook for airlines and stocks of major US carriers gain ground

Airline stocks are rising after two analysts suggested that investors are too gloomy about the shares, most of which have been falling in 2015.

J.P. Morgan analyst Jamie Baker said Monday he would expect bullish sentiment after recent events including Southwest scaling back its plan to increase passenger-carrying capacity.

Cowen and Co. analyst Helane Becker said she expects investor sentiment to improve over the next month as airline scale back on capacity plans and raise prices.

In late trading, shares of American Airlines Group Inc. were up $1.41, or 3.4 percent, to $42.97; United Continental Holdings Inc. was up $1.59, or 3 percent, to $54.84; Delta Air Lines Inc. rose 94 cents, or 2.2 percent, to $42.93; and Southwest Airlines Co. gained 57 cents, or 1.7 percent, to $34.80.

The stocks rose despite a failed attempt to broadly raise fares for the second time in June. J.P. Morgan and said airlines rolled back an increase of $2 each way after some carriers declined to go along. The carriers raised many fares by $5 each way earlier this month.