Airline Stock Roundup: Icahn Buys Stake in JBLU, CPA Reports January Traffic
In the past week, activist investor Carl Icahn has announced that he purchased a 9.91% stake in low-cost carrier JetBlue Airways JBLU. JBLU shares moved northward following the announcement.
Joby Aviation JOBY inked a deal with Dubai’s Road and Transport Authority to introduce air taxi services in the Emirate by early 2026. Copa Holdings CPA reported year-over-year declines in traffic and capacity for January.
Read the last Airline stock roundup here.
Recap of the Recent Most Important Stories
1. Justifying his decision to buy a 9.91% stake in the low-cost carrier, Icahn said that he believed JBLU shares were undervalued and represented an “attractive investment opportunity." Icahn intends to continue discussing with management and board of directors regarding the possibility of representation in the airline’s board.
JBLU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. The agreement inked at the World Governments Summit in Dubai grants Joby Aviation the exclusive right to operate air taxis in Dubai for six years. This move positions Dubai at the forefront of delivering swift, eco-friendly and noiseless air travel, courtesy of Joby Aviation’s groundbreaking technology. Expressing delight at the development, JoeBen Bevirt, the founder and CEO of Joby Aviation, said, "It is an honor to partner with the government of Dubai to demonstrate the value of sustainable air travel to the world."
3. Alaska Air Group’s ALK subsidiary, Alaska Airlines, is gearing up with lucrative offers to attract more customers in Portland. ALK will offer a premium travel experience to its guests in Portland or across its expanding network. Passengers are likely to enjoy First Class and Premium Class services, various fare offerings and other benefits.
4. In January, Copa Holdings reported a 5.9% decline in revenue passenger miles (a measure of traffic). Available seat miles (a measure of capacity) decreased 3.8% year over year. With traffic contraction outpacing the capacity decline, the load factor (percentage of seats filled by passengers) fell to 85.3% from 87.1% in January 2023.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that all airline stocks traded in the green over the past week, resulting in the NYSE ARCA Airline Index growing 1.1% to $65.82. Over the course of past six months, the NYSE ARCA Airline Index gained 4.8%.
What’s Next in the Airline Space?
Stay tuned for further news updates in the space.
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JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
Joby Aviation, Inc. (JOBY) : Free Stock Analysis Report
