Shares of Latin American airlines rose on Monday after oil prices fell due to a U.S.-Iran peace agreement, easing concerns over fuel costs. This development is expected to support airlines in the near term, although oil prices are anticipated to remain relatively elevated over the medium term.

Airline Stocks Rise

LATAM Airlines rose 4%, while Copa Holdings gained around 2.5%. Mexico-based carriers Grupo Aeromexico and Volaris climbed 3% and 5%, respectively. Brazil’s Azul advanced nearly 6%. J.P. Morgan flagged LATAM Airlines and Copa Holdings as its top picks, citing attractive valuations, stronger balance sheets, and more consistent cash flow.

In Mexico, J.P. Morgan favored Aeromexico for its earnings momentum and pricing power. However, the bank maintained a more cautious stance on Brazil’s Azul and Mexico’s Volaris, citing company-specific factors, including potential selling pressure at Azul and near-term operational challenges at Volaris.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.