Airline Stocks 2026 Outlook: BofA Upgrades Allegiant (ALGT), Cuts Frontier
BofA Securities projects a positive outlook for airlines in 2026, driven by limited capacity growth and strong premium demand. Analyst Andrew G. Didora upgraded Allegiant Travel (ALGT) to Neutral, citing efficient capacity management, while downgrading Frontier Group (ULCC) to Underperform due to higher relative expenses. Delta and United are expected to lead in free cash flow. Alaska Air (ALK) retains a Buy rating with a raised price target, despite facing industry challenges. JetBlue (JBLU) remains Underperform with revised capacity and cost estimates. Overall, the sector anticipates 2.5% domestic capacity growth and improved unit revenues.
benzinga_article·