Zacks Research Predicts Reduced Earnings for JetBlue Airways

Key Points

• Zacks Research cut its FY2028 EPS estimate for JetBlue to $0.52 from $0.57 on March 24, while the broader consensus for the current full year remains a loss of ($0.69) per share.
• Fundamentals look weak after a quarterly EPS miss (‑$0.49 vs. ‑$0.45), negative net margins and elevated leverage (debt-to-equity ~3.65), and the analyst community's average rating is "Reduce" with a consensus target price of $4.80.
• Reports that JetBlue has tapped advisers to explore a potential sale have driven speculative buying and heavy call-option activity, but prior antitrust issues (the blocked Spirit merger) mean any transaction faces significant regulatory risk.

JetBlue Airways Corporation (NASDAQ:JBLU - Free Report) - Stock analysts at Zacks Research reduced their FY2028 earnings per share (EPS) estimates for shares of JetBlue Airways in a research report issued on Tuesday, March 24th. Zacks Research analyst Team now expects that the transportation company will earn $0.52 per share for the year, down from their prior forecast of $0.57. The consensus estimate for JetBlue Airways' current full-year earnings is ($0.69) per share.

JBLU has been the subject of a number of other research reports. Morgan Stanley decreased their target price on JetBlue Airways from $8.00 to $7.00 and set an "equal weight" rating for the company in a report on Monday, December 8th. The Goldman Sachs Group raised their price target on shares of JetBlue Airways from $3.50 to $4.00 and gave the company a "sell" rating in a report on Tuesday, January 13th. Susquehanna lifted their price target on shares of JetBlue Airways from $4.55 to $5.00 and gave the company a "neutral" rating in a research report on Friday, January 9th. Evercore boosted their price objective on shares of JetBlue Airways from $5.00 to $6.00 and gave the stock an "in-line" rating in a research note on Thursday, January 29th. Finally, TD Cowen raised shares of JetBlue Airways from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, March 10th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $4.80.

JetBlue Airways Stock Performance

Shares of NASDAQ:JBLU opened at $4.75 on Thursday. The business has a 50-day moving average of $5.18 and a two-hundred day moving average of $4.86. The firm has a market capitalization of $1.76 billion, a PE ratio of -2.84 and a beta of 1.72. The company has a debt-to-equity ratio of 3.65, a current ratio of 0.74 and a quick ratio of 0.69. JetBlue Airways has a 12 month low of $3.34 and a 12 month high of $6.50.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) last issued its earnings results on Tuesday, January 27th. The transportation company reported ($0.49) earnings per share for the quarter, missing analysts' consensus estimates of ($0.45) by ($0.04). JetBlue Airways had a negative net margin of 6.64% and a negative return on equity of 25.62%. The firm had revenue of $2.24 billion during the quarter, compared to analyst estimates of $2.22 billion. During the same quarter in the previous year, the business posted ($0.21) EPS. JetBlue Airways's revenue was down 1.4% compared to the same quarter last year.

Institutional Investors Weigh In On JetBlue Airways

Several institutional investors and hedge funds have recently modified their holdings of JBLU. Samalin Investment Counsel LLC purchased a new position in shares of JetBlue Airways in the third quarter valued at $1,129,000. Assenagon Asset Management S.A. grew its holdings in JetBlue Airways by 17.6% during the 3rd quarter. Assenagon Asset Management S.A. now owns 1,951,255 shares of the transportation company's stock valued at $9,600,000 after purchasing an additional 291,758 shares in the last quarter. SG Americas Securities LLC increased its stake in JetBlue Airways by 372.1% during the 3rd quarter. SG Americas Securities LLC now owns 485,945 shares of the transportation company's stock worth $2,391,000 after buying an additional 383,018 shares during the period. ING Groep NV purchased a new stake in JetBlue Airways during the 3rd quarter worth $4,920,000. Finally, Citigroup Inc. lifted its holdings in JetBlue Airways by 91.0% in the 3rd quarter. Citigroup Inc. now owns 813,375 shares of the transportation company's stock worth $4,002,000 after buying an additional 387,543 shares in the last quarter. Hedge funds and other institutional investors own 83.71% of the company's stock.

Trending Headlines about JetBlue Airways

Here are the key news stories impacting JetBlue Airways this week:

• Positive Sentiment: Reports that JetBlue has tapped advisers to evaluate a potential sale or merger — the primary catalyst for the rally, as investors price in takeover interest and potential strategic alternatives. JetBlue taps advisers for potential sale, Semafor reports
• Positive Sentiment: Unusually large call-option buying (about 81,160 calls reported) — indicative of speculative bullish positioning that can amplify upward moves. (options volume reported in market summaries)
• Positive Sentiment: Business partnership: JetBlue announced a multi-year official airline partnership with Boston Legacy FC, which adds positive PR and revenue/marketing visibility (modest fundamental impact but supportive of sentiment). JetBlue Takes Flight as Boston Legacy FC’s Official Airline Partner
• Neutral Sentiment: Elevated short-interest and large trading volumes mean the stock is prone to sharp moves in either direction — high short interest can accentuate rallies (short-squeeze potential) but also make pullbacks swift. (market-derived short-interest data)
• Negative Sentiment: BMO Capital Markets initiated coverage with a Market Perform rating and a $4.50 price target, which is below recent trade and signals limited upside from the analyst community absent a deal. BMO Capital initiates coverage of JetBlue Airways
• Negative Sentiment: Regulatory and M&A risk — JetBlue previously saw its Spirit merger blocked in 2024, a reminder that future transactions could face antitrust scrutiny and not close. JetBlue shares jump on report airline is exploring sale — NYPost
• Negative Sentiment: Weak recent fundamentals: JetBlue reported a quarterly EPS miss, negative net margins and elevated leverage — fundamentals that could limit long-term upside absent a strategic transaction or sustained operational improvement.

About JetBlue Airways

JetBlue Airways Corporation is a low-cost scheduled passenger airline headquartered in Long Island City, New York. Since commencing service in 2000, the carrier has built a reputation for combining competitive fares with enhanced onboard amenities, including free in-flight entertainment, complimentary snacks and beverages, and onboard Wi-Fi. JetBlue operates a single fleet type of Airbus A320 family and Embraer 190 aircraft, which supports its focus on efficiency and operational consistency.

The airline's core offerings include economy-class travel and a premium business-class product known as Mint, which features lie-flat seats, curated culinary options and elevated service on select transcontinental and international routes.

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