JetBlue (JBLU) and Southwest Airlines (LUV) edged lower on Friday after BofA Global Research downgraded both stocks to ‘Underperform’ from ‘Neutral’. According to TheFly, the BofA analyst said both airlines trade at the high end of historical valuation ranges despite less exposure to "the strongest industry trends.

Airline stocks were mixed on Friday after Bank of America upgraded American Airlines Group Inc. and downgraded Southwest Airlines Co. and JetBlue Airways Corp., predicting that the network carriers will continue to outperform low-cost airlines due to demand for premium travel.

Southwest Airlines stock fell Thursday after the Department of Transportation sued the airline over a pair of "chronically delayed flights."

As part of a regulatory crackdown on “chronically” late flights, federal transport regulators are suing the carrier after reaching deals with two others.

The U.S. Transportation Department has sued Southwest Airlines for violating rules about setting realistic flight schedules. The department said Southwest

The DOT's moves come weeks after issuing a multi-million dollar fine against JetBlue.

A lawsuit filed against Southwest alleges the airline operated multiple “chronically delayed” flights affecting thousands of passengers.

President Joe Biden's administration on Wednesday sued Southwest Airlines , accusing the carrier of illegally operating multiple chronically delayed flights and disrupting passengers’ travel.

The Transportation Department also announced $650,000 in civil penalties against Frontier Airlines on Wednesday, citing chronically delayed flights. $325,000 will be paid to the U.S. Treasury while the remainder can be suspended if Frontier does not operate more chronically delayed flights in the next three years.

Shares of JetBlue Airways (JBLU) and Southwest Airlines (LUV) experienced a decline on Thursday after Bank of America (BofA) analysts issued a downgrade on both stocks, citing concerns over rising costs and weakening demand in the airline sector.

Commercial airlines had to divert or delay their flights to avoid debris from the SpaceX Starship spacecraft that exploded Thursday during a flight test.