Deutsche Bank upgrades Frontier, JetBlue to Buy on improving backdrop

Five major US airlines (American Airlines, Delta, Southwest, Alaska Air, JetBlue) and ATPCO face a federal lawsuit alleging they used a shared fare system to monitor and coordinate ticket prices, violating antitrust laws. The complaint claims this practice artificially inflated air travel costs. ATPCO, an airline-owned fare database, is central to the case. The lawsuit echoes a 1992 DOJ case that resulted in consent decrees, raising questions about the effectiveness of those measures.

JetBlue raised checked baggage fees to $50 (up from $39) to offset rising costs. Wendy's rejected a $1.4B buyout offer, citing undervaluation and a turnaround plan in place.

JetBlue Airways initiated a hostile all-cash takeover bid for Spirit Airlines, following the latter's rejection of a previous offer. The move comes as JetBlue seeks to expand its market presence.

JetBlue Airways made a $3.6 billion all-cash offer to acquire Spirit Airlines at $33 per share, which Spirit rejected citing antitrust concerns. JetBlue's shares fell following the surprise bid. Additionally, JetBlue launched its first London flight and a new route to Bogotá, Colombia.

Deutsche Bank upgraded JetBlue (JBLU) to buy, raising its price target to $5.50 from $3.00, citing favorable supply, yield focus, and upcoming product launches. Shares are down 22% YTD but up 16% in the past week after raised guidance. Analyst Michael Linenberg expects 54% upside. The call contrasts with Wall Street consensus, where 13 of 18 analysts rate JBLU a hold.

Deutsche Bank upgraded JetBlue Airways to Buy from Hold, raising its price target to $5.50 from $3, implying a 54.5% upside from the Nov 4 close of $3.56. Recent analyst notes on the airline have price targets ranging from $3 to $4.50.