JetBlue Airways (JBLU) AI Stock Analysis

• Market Cap: $2.16B
• Dividend Yield: N/A
• Average Volume (3M): 26.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -3.50%
• EPS Growth: -148.99%
• Country: US
• Employees: 23,000
• Sector: Industrials
• Sector Strength: 66
• Industry: Transportation
• EPS (TTM): -2.33
• Shares Outstanding: 353,001,040
• 10 Day Avg. Volume: 23,665,747
• 30 Day Avg. Volume: 26,755,316
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.23
• Price to Cash Flow (P/CF): -31.70
• 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: $6.33
• Price Target Upside: 3.60% Upside
• Rating Consensus: Moderate Sell
• 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 delivered a solid 4Q beat with adjusted EPS surpassing expectations and strong performance in Latin, Transatlantic, and Transcon markets.

Strategic Plans

JetBlue expressed confidence in its strategic plans, with management highlighting passenger segmentation-type opportunities, identifying markets where there could be some upside.

Negative Factors

Growth Challenges

In New York and Boston, JetBlue mentioned important limitations on growth, in light of air traffic control shortages in those markets.

JetBlue Airways Business Overview & Revenue Model

Company Description

JetBlue Airways Corporation, operating under the ticker JBLU, is a major American low-cost airline headquartered in Long Island City, New York. Established in 1998, the airline primarily focuses on offering affordable travel options while maintaining a high standard of customer service, which includes features like more legroom in coach, free in-flight entertainment, and complimentary snacks and drinks. JetBlue operates a robust network across the United States, the Caribbean, and Latin America, departing from its primary hub at John F. Kennedy International Airport in 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. There are persistent negative net income, 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: 6.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 6.11 is below the 20-day moving average (MA) of 6.66, below the 50-day MA of 7.07, and below the 200-day MA of 6.29, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 41.32 is Neutral, neither overbought nor oversold. The STOCH value of 30.17 is Neutral, 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	80 Outperform	$27.13B	8.79	28.63%	―	6.23%	20.08%
DAL	77 Outperform	$34.42B	9.99	26.19%	1.03%	6.19%	-25.26%
ALK	77 Outperform	$7.46B	19.86	9.31%	―	12.56%	69.33%
LUV	63 Neutral	$17.31B	38.71	4.50%	2.46%	5.34%	-6.20%
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%
AAL	58 Neutral	$8.57B	11.76	-21.27%	―	2.70%	2.20%
JBLU	47 Neutral	$2.16B	―	-26.60%	―	-3.50%	-148.99%

JetBlue Airways Corporate Events

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.