Shares of JetBlue (JBLU) Down 7.67% Yesterday: Here's Why
Shares of JetBlue Airways JBLU declined 7.67% on Dec 13, closing the trading session at $7.10 per share. The downside was due to the warning of air-travel demand being not as strong as expected for the month of December.
With hurricane Nicole impacting operations, close-in demand for the final month of the year has been weaker than expected. Apart from the hurricane, the holiday calendar timing this year had a greater-than-expected negative impact.
As a result, JBLU now anticipates revenue per available seat mile for the fourth quarter of 2022 to be at the low-end of its earlier guided range of 15-19% increase from fourth-quarter 2019 actuals. Other aspects of the fourth-quarter guidance are unchanged.
Capacity is still anticipated to increase in the 1-4% range from fourth-quarter 2019 actuals. CASM, excluding fuel and special items, is predicted to rise 8.5-10.5%. For fourth-quarter 2022, JetBlue still expects fuel price per gallon to be $3.65.
JetBlue’s disappointing comments on air-travel demand for the month of December resulted in declination of shares of most other airline companies on Dec 13. The NYSE Airline index lost 2.96% of its value yesterday, as most of its constituents ended the day in the red.
Zacks Rank & Key Picks
JetBlue Airways currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Transportation sector include the following:
Covenant Logistics CVLG: CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.
The gradually improving freight market scenario is a tailwind to Covenant. CVLG’s cost-control efforts are appreciated as well. CVLG currently sports a Zacks Rank #1. The stock has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 10.1% upward over the past 60 days.
Teekay Tankers TNK: TNK is being well-served by the increase in tanker rates. A gradual ramp-up in economic activities also bodes well. High fuel costs are, however, weighing on the bottom line.
Teekay Tankers currently sports a Zacks Rank #1. TNK’s shares have soared 160% in a year’s time. Over the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved 87.6% north.
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JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Teekay Tankers Ltd. (TNK) : Free Stock Analysis Report
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