MONTREAL – Shares of ********** hit a more than six-year high Friday after industry analysts upgraded their outlook for the country’s largest carrier on “fundamental” cost-cutting moves and improving passenger travel demand.

The Montreal-based carrier’s shares hovered around a peak of $10.48 set in morning trading. They were up 47 cents or 4.78 per cent at $10.40 in later trading.

**********’s shares had the best performance of all public companies in Canada last year and are up from a 52-week low of $2.07.

Analysts believes that several initiatives, including the launch of low-cost Rouge subsidiary, addition of more seating on Boeing 777s and the delivery of long-haul Boeing 787 Dreamliners, give the ******* a promising future.

Walter Spracklin of RBC Capital Markets boosted his target price nearly 42 per cent to $17, adding the *******’s shares could hit $30 under a best-case scenario of industry growth accelerating on a strong economy.

He says **********’s operating results are beating forecast across all measures.

The analyst says he underestimated the strong demand environment, which supports higher prices and the *******’s ability to more quickly reduce costs.

Cameron Doerksen of National Bank Financial also increased his target price to $12, from $8.50 saying several catalysts are emerging. They include higher fares, stabilized costs and better Trans-Atlantic revenues.

He also upgraded WestJet Airlines (TSX:WJA) on the strengthening domestic fare environment, stabilization of fuel prices and high multiples valuations for its peers.

His target price was raised to $29, up from $27. That prompted the Calgary-based carrier’s shares to gain 61 cents or 2.38 per cent at $26.27.

Source: The Canadian Press