UPDATE: Citi Initiates Coverage on Spirit Airlines

According to a research report released this morning, Citi has initiated Spirit Airlines SAVE with a Buy rating and $30 PT. Citi commented in the report, “We see Spirit as the “category killer” (the Ultra Low Cost Carrier), considering its ability to enter new markets, offer fares that are lower than fares of both existing airline competitors, and (in some cases) land transportation options, and generate high returns. Moreover, Spirit's baggage fee policies seem to induce customers to “travel light” (which also helps reduce take-off weight/fuel burn).” Spirit Airlines closed yesterday at $20.95.