The analyst states that the revised U.S. airline estimates reflect a stronger near-term revenue trend, stubbornly higher fuel prices, anticipated demand softening, and planned and expected capacity growth moderation.
The analyst upgraded, assuming JetBlue will be successful in its bid for Spirit Airlines, Inc (NYSE: SAVE).
Syth believes ULCC's shares offer a compelling risk-reward and a longer runway of growth opportunities amidst a potential JetBlue-Spirit merger.
Price Action: ULCC shares are trading lower by 1.42% at $9.68 on the last check Thursday.
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