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JetBlue wins FAA approval for 22 Spirit slots at LaGuardia

JetBlue said it secured final FAA approval to take 22 LaGuardia slots, a move cited by Citigroup as prompting an upgrade to Neutral despite valuation risks.

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JetBlue secured final Federal Aviation Administration approval to absorb 22 takeoff and landing slots at LaGuardia Airport that had been held by Spirit Aviation, which is now bankrupt, MarketBeat Ratings reported. The report said slot-constrained airports can create high barriers to entry and pricing power, and that buying the slots at a steep discount could give JetBlue an immediate operational advantage.

MarketBeat Ratings added that the regulatory green light helped drive a Citigroup upgrade of JetBlue to a Neutral rating. Citigroup characterized valuation risks as largely priced in at current levels, according to the report.

The update also framed JetBlue’s longer-term plan as a pivot toward premium travelers and premium seating. MarketBeat Ratings said JetBlue posted 14.5% revenue growth while carrying heavy debt, positioning the airline to better insulate its operations from industry headwinds.

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