** Wells Fargo raises price targets on U.S. airlines

** Brokerage says the Iran conflict initially triggered a sharp spike in jet fuel prices, prompting airlines to implement about seven fare increases in rapid succession as carriers moved largely in tandem to offset higher fuel costs

** Adds reduced industry capacity is also accelerating market rationalization, including the likely liquidation of Spirit Airlines

** Notes the steady decline of fuel prices since early April position airlines to quickly recoup related costs, boost profitability and improve the sector's longer-term earnings outlook