JetBlue Airways (JBLU) AI Stock Analysis

• Market Cap: $1.40B
• Dividend Yield: N/A
• Average Volume (3M): 25.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: -3.50%
• EPS Growth: -148.99%
• Country: US
• Employees: 23,000
• Sector: Industrials
• Sector Strength: 64
• Industry: Airlines, Airports & Air Services
• EPS (TTM): -2.33
• Shares Outstanding: 354,339,840
• 10 Day Avg. Volume: 28,268,649
• 30 Day Avg. Volume: 25,028,284
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.21
• Price to Cash Flow (P/CF): -28.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.26
• Price Target Upside: 46.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

JetBlue's overall stock score of 47 reflects its significant financial challenges, including negative cash flows and high leverage. While the company shows potential operational improvements, as highlighted in the earnings call, the technical indicators remain bearish. Valuation concerns persist due to the negative P/E ratio and lack of dividend yield. The stock requires careful consideration given the financial instability and moderate optimism for future profitability.

Positive Factors

Financial Performance

JetBlue has a low bankruptcy risk due to $4.2 billion in liquidity and $5 billion in unencumbered assets.

Market Position

JetBlue could benefit significantly if Spirit Airlines enters bankruptcy, potentially increasing JetBlue's market position.

Mergers & Acquisitions

JetBlue is considered an attractive merger and acquisition target, particularly for American and United Airlines, due to its valuable assets such as JFK slots and fleet order book.

Negative Factors

Earnings

Risks for JetBlue include potential earnings misses and increased pricing pressures from legacy airlines.

Market Sentiment

The market sentiment is perceived as overly negative towards JetBlue, grouping it with other struggling low-cost carriers despite its potential.

Operational Challenges

The grounding of P&W aircraft is expected to be a ~3 pt headwind in 2025, with uncertainties beyond that.

JetBlue Airways Business Overview & Revenue Model

Company Description

JetBlue Airways Corporation provides air passenger transportation services. As of December 31, 2021, the company operated a fleet of 63 Airbus A321 aircraft, 8 Airbus A220 aircraft, 21 Airbus A321neo aircraft, 130 Airbus A320 aircraft, and 60 Embraer E190 aircraft. It also served 107 destinations in the 31 states in the United States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and 24 countries in the Caribbean and Latin America. JetBlue Airways Corporation has a strategic partnership with American Airlines Group Inc. to create connectivity for travelers in the Northeast. The company was incorporated in 1998 and is based in Long Island City, New York.

How the Company Makes Money

JetBlue generates revenue primarily through passenger ticket sales, ancillary fees, and its loyalty program. The majority of its income comes from the sale of tickets to passengers traveling across its network of domestic and international destinations. Ancillary fees contribute significantly to revenue, including fees for checked baggage, seat selection, and in-flight purchases such as food and Wi-Fi access. Furthermore, JetBlue's TrueBlue loyalty program adds value by incentivizing repeat business and partnerships with other travel and service companies, increasing customer retention and additional revenue through point sales and co-branded credit card agreements. Partnerships with other airlines and codeshare agreements also play a role in expanding its market reach and enhancing revenue potential.

JetBlue Airways Financial Statement Overview

Summary

JetBlue Airways faces significant financial challenges across all major financial statements. The company struggles with profitability, high leverage, and negative cash flows, raising concerns about its financial sustainability. Improvements in revenue generation and cost management are crucial for stability and growth.

Income Statement

JetBlue's income statement shows significant challenges, including declining revenues in recent years and persistent negative net income. The gross profit margin has been volatile, and EBIT and EBITDA margins are negative, indicating operational inefficiencies and profitability concerns. Revenue growth was negative in 2024 compared to 2023, which raises further concerns about growth prospects.

Balance Sheet

The balance sheet reveals high leverage with a rising debt-to-equity ratio, indicating increased financial risk. Stockholders' equity has been declining, and the company's equity ratio is under pressure. These factors reflect financial instability and potential risk if the company cannot improve operational performance or manage its debt levels.

Cash Flow

JetBlue's cash flow statement highlights substantial liquidity challenges, with negative free cash flow and declining operating cash flow visibility. The free cash flow to net income ratio is concerning, and free cash flow growth has been negative, indicating cash management issues and potential capital expenditure constraints.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.28B	9.62B	9.16B	6.04B	2.96B
	Gross Profit
4.64B	904.00M	1.47B	350.00M	-1.13B
	EBIT
-684.00M	-230.00M	-185.00M	-913.00M	-1.71B
	EBITDA
108.00M	497.00M	314.00M	452.00M	-1.19B
	Net Income Common Stockholders
-795.00M	-310.00M	-362.00M	-182.00M	-1.36B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.61B	1.57B	1.04B	2.02B	1.92B
	Total Assets
16.84B	13.85B	13.04B	13.64B	13.35B
	Total Debt
9.14B	5.38B	4.38B	4.80B	5.73B
	Net Debt
7.22B	4.21B	3.34B	2.78B	3.81B
	Total Liabilities
14.20B	10.52B	9.48B	9.79B	9.41B
	Stockholders Equity
2.64B	3.34B	3.56B	3.85B	3.94B
Cash Flow		Free Cash Flow
-1.35B	-806.00M	-544.00M	647.00M	-1.47B
	Operating Cash Flow
144.00M	400.00M	379.00M	1.64B	-683.00M
	Investing Cash Flow
-3.08B	-1.38B	-908.00M	-704.00M	-1.35B
	Financing Cash Flow
3.77B	1.11B	-360.00M	-830.00M	2.98B

JetBlue Airways Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBLU, the sentiment is Negative. The current price of 3.6 is below the 20-day moving average (MA) of 5.10, below the 50-day MA of 5.93, and below the 200-day MA of 6.25, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 29.88 is Positive, neither overbought nor oversold. The STOCH value of 17.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JBLU.

JetBlue Airways Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UAL	72 Outperform	$18.88B	6.23	28.63%	―	6.23%	20.08%
DAL	70 Outperform	$24.06B	6.98	26.19%	1.47%	6.19%	-25.26%
LUV	67 Neutral	$15.33B	34.30	4.50%	2.77%	5.34%	-6.20%
Sector *	62 Neutral	$7.16B	12.21	3.08%	3.43%	3.62%	-14.48%
ULCC	60 Neutral	$786.62M	9.71	15.12%	―	5.18%	―
AAL	56 Neutral	$6.22B	8.76	-21.27%	―	2.70%	2.20%
JBLU	47 Neutral	$1.40B	―	-26.60%	―	-3.50%	-148.99%

JetBlue Airways Corporate Events

JetBlue Airways Updates Q1 2025 Operational Outlook

JetBlue Airways announced an operational and financial update for the first quarter of 2025, highlighting challenges such as weather-related disruptions and demand fluctuations due to mixed macroeconomic indicators. Despite these challenges, the company is implementing targeted capacity reductions and remains optimistic about peak travel demand and its JetForward initiatives. JetBlue has adjusted its guidance for available seat miles and capital expenditures, reflecting a strategic response to current conditions.

JetBlue Airways Reports Q4 2024 Financial Results

JetBlue Airways announced its financial results for the fourth quarter of 2024, detailing a net loss under GAAP of $44 million, and an adjusted operating margin improvement to 0.8%. The airline exceeded its revenue target for 2024 with $395 million in revenue initiatives and noted significant progress with its JetForward strategy, contributing $90 million to EBIT. The airline’s operational reliability improved, with better customer satisfaction and fewer controllable cancellations, marking a successful year-end despite a 5.1% decrease in capacity year-over-year. Looking forward, JetBlue aims to continue building on 2024’s momentum in 2025 with a focus on revenue performance, cost control, and operational enhancements as part of JetForward, expecting positive operating margins for the year.