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JetBlue Downgraded By Wolfe Research

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Wolfe Research downgraded JetBlue Airways Corporation (NASDAQ:JBLU) to an Underperform rating after having the airline stock set at Peer Perform.

The firm has a decided lack of confidence in the logic for the proposed takeover of Spirit Airlines (SAVE).

"We continue to struggle to understand the rationale for the SAVE merger... We expect approximately 40% EPS dilution for JBLU in C23 from a potential merger, and that’s before factoring in any potential dis-synergies from higher pilot costs," warned analyst Scott Group.

Beyond the Spirit Airlines wildcard, Group and team note that JetBlue is underperforming peers on controlling costs.

"On a capacity-adjusted basis, JBLU’s underlying cost guidance is worst among the airlines except for ALGT. And we see the same directional trend for the full-year."

 


 

Comments

Anonymous said…
It just doesn’t get any better for them. Yesterday it made because a flight tried to land at JFK supposedly 4 times in bad weather and failed then they got diverted to EWR. Made them sit on the plane for 7 hours before sending them back to JFK. They wouldn’t let anyone get off and there were people sick and nauseous according to the inside edition piece on it. They only gave people a $50 voucher for the inconvenience. If they end up buying spirit, it’s just going to be worse and worse for both companies unless they can find a solution soon but by the looks of it, doesn’t look like it.

I fly from JFK to Nashville on JetBlue next week so it should be interesting to see if any problems arise.
April 12, 2022 at 6:26 PM
Anonymous said…
Yesterday it made news headlines again (forgot to add that)
April 12, 2022 at 6:26 PM
Anonymous said…
Misleading headline on post!!! Its Jetblue STOCK thats been downgraded by an analyst. Who the heck is Wolfe Research anyway?? If I followed analyst recommendations, I'd be broke after a year or two!!
April 19, 2022 at 7:02 AM
Bill Randell said…
Misleading headline???

JetBlue was downgraded by Wolfe Research is in fact true.

If you do not like Wolfe Research or analysts, that is fine.

But it is not a misleading post???
April 19, 2022 at 2:01 PM
Unknown said…
JetBlue STOCK was downgraded !!!! Not JetBlue Airways!!
April 19, 2022 at 2:53 PM
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