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JetBlue Airways (JBLU)
NASDAQ:JBLU
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JetBlue Airways (JBLU) AI Stock Analysis

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JBLU

JetBlue Airways

(NASDAQ:JBLU)

Rating:52Neutral
Price Target:
$5.00
▼(-1.57% Downside)
JetBlue's overall score reflects significant financial challenges, despite positive operational improvements and strategic initiatives. The technical indicators suggest short-term potential, but long-term valuation concerns persist.
Positive Factors
Liquidity and financial stability
JetBlue is believed to have ample liquidity to weather potential economic downturns, with significant assets and undrawn credit facilities.
Partnership and collaboration
The Blue Sky partnership with United Airlines is expected to add an incremental $50M of EBIT through 2027.
Service and customer benefits
The collaboration with UAL will expand options and benefits for TrueBlue members, enhancing JBLU's service offering.
Negative Factors
Financial risk and earnings
It is deeply unclear if the benefits from a potential partnership with United could help JetBlue to reverse its free cash outflow and reduce its debt load.
Revenue and earnings
JetBlue’s unit cost growth is expected to exceed unit revenue growth.
Revenue trend
JetBlue's revenue trend is showing a decline, which is the second worst among U.S. airlines, potentially due to a loss of demand momentum in coastal markets.

JetBlue Airways (JBLU) vs. SPDR S&P 500 ETF (SPY)

JetBlue Airways Business Overview & Revenue Model

Company DescriptionJetBlue Airways (JBLU) is a major American low-cost airline headquartered in New York City. Established in 1998, the company operates primarily in the domestic and international passenger air transportation sectors, serving destinations across the United States, the Caribbean, and Latin America. JetBlue is known for its customer service, offering a range of core products including economy and premium seating options, in-flight entertainment, and complimentary snacks and beverages, setting itself apart from traditional low-cost carriers.
How the Company Makes MoneyJetBlue Airways generates revenue primarily through passenger ticket sales, which account for the majority of its income. The airline employs a low-cost business model, offering competitive fares while providing various fare classes, from basic economy to more premium options. Additionally, JetBlue earns revenue from ancillary services, including baggage fees, seat selection fees, and in-flight sales such as food, beverages, and Wi-Fi. The company also has partnerships with various travel-related companies, including hotels and car rental services, which contribute to its earnings through commission-based arrangements. Frequent flyer programs, such as JetBlue's TrueBlue, further enhance customer loyalty and encourage repeat business, creating a steady revenue stream. Seasonal promotions and strategic routes also play a significant role in optimizing revenue, as JetBlue positions itself in high-demand markets.

JetBlue Airways Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: 16.51%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, such as improved operational performance, the Blue Sky collaboration with United, and strong financial management. However, challenges like weather disruptions, a difficult macroeconomic environment, and expected revenue declines balanced the positive achievements.
Q2-2025 Updates
Positive Updates
Improved Operational Performance
JetBlue achieved a completion factor of 99.6% and improved on-time performance by 3 points year-over-year, contributing to increased customer satisfaction and Net Promoter Score.
Blue Sky Collaboration with United Airlines
The collaboration is expected to contribute an incremental $50 million in EBIT through 2027, increasing JetForward EBIT target to $850 million to $950 million through 2027.
Strong Financial Management
JetBlue maintained liquidity at $3.4 billion and achieved a modest operating profit in the second quarter, with a revised fleet plan enabling sustainable and capital-efficient growth.
Recognition for Customer Satisfaction
JetBlue was recognized by J.D. Power as the top airline for first and business class customer satisfaction in The 2025 North America Airline Satisfaction Study.
Strong Demand and Revenue Management
Close-in bookings increased 7% year-over-year, and premium cabin and loyalty revenues showed resilience, with premium unit revenues up mid-single digits and loyalty remunerations up 9%.
Negative Updates
Weather and Air Traffic Control Challenges
Weather and air traffic control-related disruptions in July impacted operations and pressured the completion factor in the third quarter.
Challenging Macro Environment
Despite achieving some financial targets, the overall macroeconomic environment remained challenging, impacting demand and creating uncertainty in revenue forecasting.
Capacity and Revenue Challenges
Third quarter unit revenue is expected to be down between 6% and 2%, with capacity ranging from down 1% to up 2%, reflecting ongoing demand and revenue challenges.
Company Guidance
In the second quarter of 2025, JetBlue Airways exceeded guidance across key metrics, despite a challenging macroeconomic environment, achieving a modest operating profit. The airline's Net Promoter Score (NPS) rose by double digits year-over-year, reflecting significant improvements in customer satisfaction. JetBlue's collaboration with United Airlines, dubbed Blue Sky, is projected to contribute an incremental $50 million in EBIT by 2027, enhancing the airline's JetForward EBIT target to a range of $850 million to $950 million. Operational enhancements led to a 3-point improvement in on-time performance and a 0.5-point increase in completion factor, delivering approximately $15 million in incremental EBIT in the first half of 2025. Additionally, network optimization yielded $15 million in incremental EBIT, while product and perk enhancements generated $35 million. Cost transformation initiatives produced $25 million in EBIT, marking the seventh consecutive quarter of cost outperformance. Overall, JetBlue realized $180 million in JetForward EBIT by mid-2025, with expectations to reach $290 million by year-end.

JetBlue Airways Financial Statement Overview

Summary
JetBlue faces significant financial challenges, marked by negative profitability and cash flow pressures. The high leverage and unstable revenue growth pose risks and necessitate strategic adjustments to improve financial health. While the cash reserves provide a buffer, the company needs to address its operational inefficiencies and leverage to ensure long-term sustainability in the competitive airline industry.
Income Statement
45
Neutral
JetBlue's income statement shows a challenging financial environment with negative net income and EBIT for the TTM (Trailing-Twelve-Months), indicating operational difficulties. Gross profit margin stands at 18.64%, reflecting some capacity to cover costs. Revenue has been volatile, with a slight contraction of 0.74% from the previous year. This instability suggests ongoing struggles to maintain growth, particularly in a highly competitive industry.
Balance Sheet
50
Neutral
The balance sheet reflects a strong cash position with $3.5 billion in cash equivalents, yet the debt-to-equity ratio of 3.85 suggests significant leverage, which poses financial stability risks. The equity ratio of 14.30% indicates limited equity financing, while a negative return on equity (ROE) of -11.74% highlights profitability challenges. These factors underscore the need for strategic financial management.
Cash Flow
40
Negative
JetBlue's cash flow statement reveals a negative free cash flow of -$1.276 billion, indicating cash burn pressures. The operating cash flow to net income ratio of -0.19 suggests inefficiency in converting income into operational cash. The negative cash flow metrics raise concerns about the company's ability to sustain operations without external funding.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.14B9.28B9.62B9.16B6.04B2.96B
Gross Profit2.68B4.64B904.00M1.47B350.00M-1.13B
EBITDA679.00M108.00M497.00M314.00M452.00M-1.19B
Net Income-386.00M-795.00M-310.00M-362.00M-182.00M-1.36B
Balance Sheet
Total Assets16.90B16.84B13.85B13.04B13.64B13.35B
Cash, Cash Equivalents and Short-Term Investments3.06B3.61B1.57B1.04B2.02B1.92B
Total Debt9.41B9.14B5.38B4.38B4.80B5.73B
Total Liabilities14.49B14.20B10.52B9.48B9.79B9.41B
Stockholders Equity2.41B2.64B3.34B3.56B3.85B3.94B
Cash Flow
Free Cash Flow-1.04B-1.35B-806.00M-544.00M647.00M-1.47B
Operating Cash Flow-47.00M144.00M400.00M379.00M1.64B-683.00M
Investing Cash Flow-1.98B-3.08B-1.38B-908.00M-704.00M-1.35B
Financing Cash Flow2.95B3.77B1.11B-360.00M-830.00M2.98B

JetBlue Airways Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.08
Price Trends
50DMA
4.50
Positive
100DMA
4.51
Positive
200DMA
5.57
Negative
Market Momentum
MACD
0.20
Negative
RSI
61.61
Neutral
STOCH
82.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBLU, the sentiment is Positive. The current price of 5.08 is above the 20-day moving average (MA) of 4.67, above the 50-day MA of 4.50, and below the 200-day MA of 5.57, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 61.61 is Neutral, neither overbought nor oversold. The STOCH value of 82.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JBLU.

JetBlue Airways Risk Analysis

JetBlue Airways disclosed 41 risk factors in its most recent earnings report. JetBlue Airways reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

JetBlue Airways Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$33.08B10.0027.70%4.23%13.13%
80
Outperform
$39.50B8.7830.07%1.08%3.01%-0.90%
64
Neutral
$16.59B47.504.30%2.31%1.64%284.24%
63
Neutral
$10.76B16.247.41%2.07%2.60%-16.34%
62
Neutral
$8.72B16.46-21.27%1.50%
52
Neutral
$1.92B-15.12%-1.90%61.06%
48
Neutral
$1.05B13.43-6.63%4.60%49.81%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JBLU
JetBlue Airways
5.08
0.30
6.28%
DAL
Delta Air Lines
57.84
16.95
41.45%
LUV
Southwest Airlines
31.07
3.53
12.82%
UAL
United Airlines Holdings
97.18
53.86
124.33%
AAL
American Airlines
12.57
2.18
20.98%
ULCC
Frontier Group Holdings
4.15
0.70
20.29%

JetBlue Airways Corporate Events

Business Operations and StrategyFinancial Disclosures
JetBlue Reports Modest Q2 Profit Amid Strategy Success
Positive
Jul 29, 2025

On July 29, 2025, JetBlue Airways reported a modest operating profit for the second quarter of 2025, driven by improved demand and the successful execution of its JetForward strategy. Despite a net loss under GAAP, the company exceeded its revenue and cost guidance, highlighting strong operational performance and customer satisfaction improvements. JetBlue’s collaboration with United, known as Blue Sky, is expected to enhance customer choice and contribute significantly to its financial targets, with a projected EBIT benefit of up to $950 million by 2027. The airline plans to return to growth in 2026, supported by an improved aircraft on the ground outlook, and continues to advance its fleet modernization efforts.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025