The spell flavor says: "Immense, scaled wings unfurl from behind you and beat at nearby foes in a savage flurry before vanishing as quickly as they appeared." (Emphasis added.) The meat of the description says "...wings that strike at every target in range, dealing 1d6 points of damage per caster level to all designated targets..." (Emphasis added.)
I think it reads, both RAW and RAI, that the spell affects only those targets designated by the caster who are in range. While it is not untenable to argue otherwise, to me, it is unreasonable. The use of the word "target" instead of the word "creature" is significant, as is the use of the word "designated".
It seems clear to me that the spell functions to affect designated targets rather than all targets. While I'm not suggesting that this is the best idea for a spell or the most well-drafted spell, it strains reasonableness to interpret the spell as affecting all creatures within the area. (I do understand that the stat block does not include the category "Target", but I'm not sure it needs to in order for a spell to have a target.)