Spirit Jumps Most Since January as Barclays Raises ForecastBy
Spirit Airlines Inc. climbed the most in seven months after Barclays analysts said earnings in 2016 should increase across the industry due to cheaper jet fuel.
“Lower oil likely comes with incremental revenue softness but on balance we think estimates and airline stocks are likely on the rise,” Barclays analysts David Fintzen and Jennifer Lee wrote in a note to customers.
Spirit led a rally across the Bloomberg U.S. Airlines Index, with 10 of 11 carriers climbing for the day. Spirit jumped 6.7 percent to $52.49 at the close of trading in New York, it’s biggest one-day gain since Jan. 22. United Continental Holdings Inc. gained 6.2 percent.
Barclays increased its forecast for Spirit’s earnings per share next year by 18 percent to $5.56. It sees earnings per share at United up 28 percent to $9.28.
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