Investing.com -- Raymond James said Delta Air Lines (NYSE: DAL) stands out as the best positioned carrier among publicly traded US airlines heading into the fourth quarter of 2026, followed by JetBlue Airways (NASDAQ: JBLU), based on an analysis of near-term capacity and fare trends.

Alaska Air Group (NYSE: ALK) faces the most challenges among the carriers reviewed, followed by Allegiant Travel (NASDAQ: ALGT), according to the firm. The assessment primarily reflects increased route overlap for Alaska, while Allegiant maintains the greatest exposure to non-competitive routes.

Raymond James said competitive capacity trends are generally slightly negative across the airline group heading into the fourth quarter, though still mostly positive on an absolute basis. Alaska and Southwest Airlines (NYSE: LUV) are exceptions to this trend.

The firm expects fourth quarter domestic schedules remain overstated by approximately 0.5 percentage points, with anticipated cuts primarily at American Airlines (NASDAQ: AAL), Frontier Airlines, and United Airlines (NASDAQ: UAL).

For the third to fourth quarter period, the overall capacity setup is best for Delta, followed by JetBlue and United, and worst for Alaska, followed by Southwest, Raymond James said.

Changes in competitive overlap in the fourth quarter are favorable for most carriers primarily due to Spirit Airlines' exit from the market. The changes are most favorable for JetBlue and Frontier, followed by Delta and Southwest. Alaska and Allegiant are notable exceptions to this trend.

The fare trend setup in the third quarter is most favorable for JetBlue and Allegiant, followed by United and Delta. The trend is somewhat challenging for Frontier and American, followed by Southwest and Alaska, according to the analysis.