The company is also expected to benefit from lower oil
prices which is likely to help margins. JetBlue has been relatively unaffected
by the Boeing crisis as the company does not have any Boeing 737 Max jets in
its fleet. However fluctuations in its load factor remain a concern.
In the first quarter of 2019, JetBlue beat earnings estimates despite adjusted EPS falling 38% to $0.16. Revenue increased 7% to $1.87 billion. RASM declined 3.1% year-over-year while cost per available seat mile (CASM), ex-fuel, rose 0.9%.
For the second
quarter of 2019, capacity is expected to increase between 4.5% and 6.5%
year-over-year. For full-year 2019, capacity is expected to grow in the
range of 1% to 4%. JetBlue is expected to see a 6.5% growth in revenues for
fiscal-year 2019, which is higher than most of its peers in the airline
industry.
JetBlue’s shares have gained 19% so far this year and 12% in the past three months. According to TipRanks, out of seven analysts covering the stock, three have rated it Buy while four have rated it Hold. None have rated it Sell. The average one-year price target on the stock is $22.21.