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Investing.com - Goldman Sachs has reiterated its Sell rating and $3.50 price target on JetBlue Airways (NASDAQ:JBLU) despite the airline’s improved third-quarter outlook. According to InvestingPro data, the company operates with a significant debt burden of $9.4 billion and a concerning debt-to-equity ratio of 3.91x.
JetBlue published an investor update raising its September quarter forecast based on better-than-expected revenue and cost performance. The company now expects unit revenue to decline 2.75% year-over-year at the midpoint, compared to its previous projection of a 4.0% drop. However, InvestingPro analysis reveals the company is quickly burning through cash, with negative free cash flow of $1.2 billion in the last twelve months.
The airline reported that improving revenue trends noted earlier in the summer have continued through Labor Day, with particular strength in close-in demand. JetBlue also indicated that current bookings suggest these better revenue trends may continue through year-end.
On the cost side, JetBlue’s focus on operational performance drove better unit cost excluding fuel than originally expected, with the midpoint now indicating a 4.5% year-over-year decrease versus the previous 5.0% projection. The company also lowered its jet fuel price per gallon forecast to $2.45-$2.55 from $2.50-$2.65.
Goldman Sachs narrowed its September quarter net loss per share estimate to ($0.48) from ($0.55) previously, compared to the consensus loss per share of ($0.53) as of last close, while maintaining its 12-month price target of $3.50.
In other recent news, JetBlue Airways Corp. has updated its third quarter 2025 guidance with improved revenue and cost projections. The company reported strong demand for air travel throughout the summer, which contributed to better-than-expected revenue results. In the second quarter of 2025, JetBlue surpassed analyst expectations by reporting an earnings per share (EPS) of -$0.21, beating the forecasted -$0.33. The airline also exceeded revenue expectations, bringing in $2.4 billion compared to the projected $2.29 billion. Additionally, JetBlue announced plans to expand its route network, including its first-ever service to Vero Beach, Florida, and a return to Daytona Beach, Florida, with daily year-round flights from Boston Logan International Airport and New York’s John F. Kennedy International Airport starting in December 2025. These developments highlight JetBlue’s strategic efforts to enhance its market presence and financial performance.
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