Read Why Goldman Sachs Is Bearish On Some Airline Stocks Short-Term - JetBlue Airways (NASDAQ:JBLU), Allegiant Travel (NASDAQ:ALGT), Spirit Airlines (NYSE:SAVE), American Airlines Gr (NASDAQ:AAL)

Goldman Sachs analyst Catherine O'Brien downgraded JetBlue Airways, American Airlines and lowered the Price Target for Allegiant Travel and Spirit Airlines.
O'Brien remains positive on the path to profitability recovery for the airlines over the medium-term but reduced December quarter and 2022 outlooks as she mark-to-markets for fuel and a worse short-term revenue environment than previously expected.
The analyst downgraded JetBlue Airways Corp JBLU to Neutral from Buy and lowered the price target to $17 (implying an upside of 10%) from $20.
O'Brien expects JetBlue's costs to continue its codeshare partnership with American will outstrip revenue driven by the alliance over the medium-term, especially given the pricing pressure she expects to see across the industry due to elevated capacity and corporate/international demand "that will likely still be in recovery."
The analyst downgraded American Airlines Group Inc AAL to Sell from Neutral and lowered the price target to $18 (implying a downside of 13%) from $19.
O'Brien expects American shares to underperform, saying its "relatively higher" operating leverage will weigh on its profitability recovery in a weaker industry pricing environment over the medium term.
The analyst lowered Allegiant Travel Co's ALGT price target to $265 (implying an upside of 36%) from $278 and maintained a Neutral rating on the shares.
The analyst lowered Spirit Airlines Inc's SAVE price target to $28 (implying an upside of 7%) from $35 and maintained a Neutral rating.
Price Action: JBLU shares are trading lower by 4.62% at $15.39, AAL lower by 4.3% at $20.54, ALGT lower by 3.59% at $193.8, and SAVE lower by 4.08% at $25.9 on the last check Wednesday.

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