JetBlue assumed with a Sell at UBS

UBS analyst Thomas Wadewitz assumed coverage of JetBlue (JBLU) with a Sell rating and $5 price target The firm says supply and demand balance is the most important driver of airline RASM growth and margin performance, and expects the downshifting of supply growth from 5%- 6% in the first half of 2024 to 1%-2% growth in the second half to support an improvement in supply and demand which translates to stronger RASM growth and improving margins in 2025, the analyst tells investors in a research note. UBS is cautious on JetBlue due to limited visibility to its transition to a positive operating margin in 2025, use of cash in 2025 and 2026 and elevated balance sheet leverage.