Domestic vs. International Flight Prices: As summer travel comes to a close, Americans are experiencing slightly lower prices for domestic flights, while international flight tickets are seeing a slight increase in cost.
Investor Sentiment: Investors who have invested in U.S. airline stocks are observing a split in their portfolios, with a generally positive outlook on the airline industry from Wall Street.
Airline Performance
Legacy Airlines: Full-service airlines, particularly Delta Air Lines Inc. and United Airlines Holdings Inc., are favored by investors and analysts, indicating a strong preference for these legacy carriers.
Budget Airlines Challenges: Several budget airlines are facing significant challenges, including the potential bankruptcy or restructuring of one of their well-known brands, highlighting the difficulties within the low-cost segment of the market.
ULCC
$5.115+Infinity%1D
Analyst Views on ULCC
Wall Street analysts forecast ULCC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ULCC is 6.00 USD with a low forecast of 3.00 USD and a high forecast of 9.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
Wall Street analysts forecast ULCC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ULCC is 6.00 USD with a low forecast of 3.00 USD and a high forecast of 9.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
8 Hold
0 Sell
Hold
Current: 5.760
Low
3.00
Averages
6.00
High
9.00
Current: 5.760
Low
3.00
Averages
6.00
High
9.00
UBS
Atul Maheswari
Neutral
maintain
$4 -> $6
2025-12-12
New
Reason
UBS
Atul Maheswari
Price Target
$4 -> $6
2025-12-12
New
maintain
Neutral
Reason
UBS analyst Atul Maheswari raised the firm's price target on Frontier Group to $6 from $4 and keeps a Neutral rating on the shares. Frontier has the opportunity to gain share as Spirit Airlines pulls back, the analyst tells investors in a research note. The firm remains on the sidelines given growth in legacy basic economy seating coupled with the run-up in the stock.
Morgan Stanley
Equal Weight
downgrade
$9 -> $8
2025-12-08
Reason
Morgan Stanley
Price Target
$9 -> $8
2025-12-08
downgrade
Equal Weight
Reason
Morgan Stanley lowered the firm's price target on Frontier Group to $8 from $9 and keeps an Equal Weight rating on the shares. The firm maintains an "Attractive" industry view of U.S. airlines into 2026, contending that if the group can finally get a clean, "boring" year to demonstrate their true normalized earnings power, it "could be a transformative year for the stocks."
Citi
Neutral
initiated
$5
2025-12-04
Reason
Citi
Price Target
$5
2025-12-04
initiated
Neutral
Reason
Citi initiated coverage of Frontier Group with a Neutral rating and $5 price target. The firm believes the setup is positive for the airlines with an "elongated mid-cycle" beginning in 2026. Citi sees the largest beneficiaries as being the "supermajors." The large airlines offer the most favorable risk/reward, the analyst tells investors in a research note. On the other side, Citi believes the legacy low-cost carriers will be underperformers through the cycle.
UBS
Atul Maheswari
Neutral
maintain
$5
2025-09-26
Reason
UBS
Atul Maheswari
Price Target
$5
2025-09-26
maintain
Neutral
Reason
UBS analyst Atul Maheswari raised the firm's price target on Frontier Group to $5 from $3.50 and keeps a Neutral rating on the shares. The firm adjusted airline industry models ahead of the Q3 reports to reflect recent commentary. The Q3 earnings prints and Q4 outlooks will again show the widening gap between the strongly positioned airlines versus the rest of the industry, the analyst tells investors in a research note. UBS thinks recent improving demand and fare trends have provided an offset to the modest expense pressure for most airlines.
About ULCC
Frontier Group Holdings, Inc. is a holding company. The Company operates through its subsidiary, Frontier Airlines, Inc., which is an ultra-low-cost carrier company. The Company offers flights throughout the United States and to select near international destinations in the Americas. It has a fleet of approximately 159 Airbus single-aisle aircraft, consisting of eight A320ceos, 82 A320neos, 21 A321ceos and 48 A321neos. The Company primarily provides air transportation for passengers. It provides passenger airline service primarily to leisure travelers. It combines its fares with flexible optional services for an additional cost. Such additional options include carry-on and checked baggage, advance seat selection, extended-legroom premium seats, priority boarding and ticket changes and cancellations, as well as bundled options combining various optional services. The Company serves approximately 100 airports throughout the United States and international destinations in the Americas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
