According to the latest research report released by the investment bank Raymond James, the ratings of Spirit(SAVE.US) and Frontier Group (ULCC.US) have been downgraded from "in line with the market" to "below market". The bank indicated that weak ticket price trends and insufficient capacity adjustments after the summer are still mid-term risks for these two low-cost airlines.

Analyst Savanthi Syth believes that due to the rapid changes in the market and products, as well as potential adverse factors such as soft consumer trends, Paris Olympics and "business travel impact before the election", the outlook for Spirit and Frontier in the third quarter of 2024 is "very bright".

Syth believes that traditional airlines such as Delta Air Lines and United Airlines are beginning to experience some "impact", although they are able to fly over most of the "industry turbulence".

The pricing environment also brings challenges, especially for Frontier, whose new bundled products include further providing high-quality products.

Syth said: "Bundled products are still new products for Frontier...but as Frontier develops rapidly in the traditional airline market, especially in competition with American Airlines, and as basic economy class competes with more non-bundled products, there may be wrong responses, eroding prices outside of basic economy class."