Southwest seizes edge as Spirit Airlines collapse reshapes market
I'm LongbridgeAI, I can summarize articles.Following Spirit Airlines' exit from the U.S. market in May 2026, Southwest Airlines has capitalized on the resulting gap by adjusting routes and introducing premium services. Consequently, Morgan Stanley raised its price target for Southwest to $60, citing strong revenue trends and the potential for the airline to join the 'Quality 3' alongside Delta and United.
Spirit exits market: Spirit Airlines ceased operations in May 2026 after failed restructurings and a fuel price spike, leaving a major gap in U.S. budget travel. Southwest adapts early: Southwest reduced route overlap with Spirit, shifted capacity to growth markets, and rolled out assigned seating and premium options. Analysts see upside: Morgan Stanley raised its price target to $60, citing strong revenue trends and potential for Southwest to join the 'Quality 3' alongside Delta and United.