Barclays maintains bullish view on budget airlines over traditional rivals

** Given current market and economic conditions, Barclays maintains a preference for low-cost carriers (LCCs) over traditional "flag" airlines

** The brokerage lists the upcoming UK budget, the macroeconomic environment, and geopolitical tensions as key risks for the sector

** In its view the enthusiasm for European flag carriers following Delta's DAL Q3 results is "excessive"

** While the US airline did point to better Atlantic trends in Q4, the key positive news was in the domestic market inflection, Barclays says

** The brokerage notes that although September quarter was disappointing for airlines on North Atlantic and intra-European routes, trading for autumn looks slightly brighter

** A slower growth strategy is seen as safer for the upcoming winter season, it adds

** Barclays says it sees positive catalysts ahead for Ryanair 0RYA and Norwegian Air NAS as well as leisure travel operator TUI TUI

** It upgrades Norwegian to "overweight" from "equal weight", raises PT by 4.4% to NOK 17.75

** According to the broker, Norwegian stands out with conservative growth, improving revenue trends, and cost easing on the horizon