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On Tuesday, Raymond (NSE:RYMD) James analyst Savanthi Syth maintained a Market Perform rating on JetBlue Airways (NASDAQ:JBLU), following the airline’s fourth-quarter earnings report. Syth highlighted that JetBlue’s fourth-quarter revenue reached the upper end of the company’s guidance, with adjusted earnings per share (EPS) slightly surpassing consensus estimates, but falling short of Raymond James’ expectations due to increased non-operational expenses. According to InvestingPro data, JetBlue operates with a significant debt burden and has seen its stock surge over 30% in the past six months despite operational challenges. The company’s current market capitalization stands at $2.33 billion.
JetBlue’s financial outlook for the first quarter of 2025 and the full year suggests an EPS of approximately $(0.65) and $(0.75), respectively. These projections are less favorable compared to Raymond James and consensus forecasts of $(0.31)/$(0.45) for the first quarter and $(0.12)/$(0.56) for the full year. The airline’s revenue outlook, which aligns with or falls below expectations, contrasts with the more optimistic revenue outlooks provided by competitors such as American Airlines (NASDAQ:AAL), Alaska Air Group (NYSE:ALK), Delta Air Lines (NYSE:DAL), and United Airlines (UAL) this earnings season. InvestingPro analysis reveals that 7 analysts have recently revised their earnings upwards for the upcoming period, though the company’s overall financial health score remains FAIR.
The analyst pointed out that JetBlue’s more conservative outlook could be attributed to the airline’s lower exposure to large corporate travel and increased competitive capacity pressures. Despite these challenges, JetBlue anticipates a marginal improvement in EBIT margin, forecasting a rise from (1)% in 2024 to between 0% and 1% in 2025. This improvement is expected even as the company faces a growing impact from GTF engine-related issues, which are projected to increase from approximately 2.5 percentage points in 2024 to around 3 percentage points in 2025. For deeper insights into JetBlue’s financial health and future prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities with detailed analysis and actionable intelligence.
In other recent news, JetBlue Airways has made headlines with several recent developments. The airline has integrated Venmo as a payment method for flight bookings on its website, making it the first airline to do so. This move aligns with JetBlue’s commitment to simplifying the booking process on its digital platforms. Meanwhile, Citi analysts have maintained a Neutral rating for JetBlue, adjusting the price target to $7.90 due to an anticipated increase in revenue per available seat mile (RASM).
In contrast, BofA Securities downgraded Southwest Airlines (NYSE:LUV) Co.’s stock rating from Neutral to Underperform, citing concerns about the airline’s limited involvement in corporate, premium, and international routes. JetBlue also faced some operational challenges, as two unidentified bodies were found in the wheel well of one of their planes after landing in Fort Lauderdale. The airline is currently undergoing an investigation. Additionally, the US Transportation Department imposed a $2 million fine on JetBlue for continuous flight delays and setting unrealistic schedules.
Finally, JetBlue’s CEO, Joanna Geraghty, has urged the incoming administration to strengthen the country’s air traffic control system, highlighting inadequate staffing and outdated technology as significant issues. The airline also announced plans to introduce first-class sections on its domestic flights starting in 2026. Morgan Stanley (NYSE:MS) resumed coverage of JetBlue stock with an Equalweight rating, focusing on the airline’s strategic plan, JetForward, set to unfold in 2025.
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