Citi backs major airlines for 2026 upswing, warns on low-cost

Citi initiated coverage on US airlines with a bullish view on the 'supermajors', expecting an elongated mid-cycle upswing in 2026. Alaska, American, United, and Delta received buy ratings, while Southwest was rated neutral and JetBlue sell. Analysts warned that weak demand for economy fares and rising costs continue to pressure low-cost carriers' margins.