JetBlue Sees Uptick in Revenue & Booking Trends, Shares Up
Shares of JetBlue Airways Corporation JBLU gained 2.3% at the close of business on Sep 22, following an upbeat update on its third-quarter 2020 performance.
In a SEC filing, the airline revealed that the company “has seen modest improvement in revenue and booking trends, driven by visiting friends and relatives and leisure demand” since August. Owing to this tailwind as well as cost-reduction measures and capacity cuts, the carrier anticipates average daily cash burn to be at the low end of the guided range of $7-$9 million for the third quarter.
Meanwhile, JetBlue expects scheduled capacity to decline approximately 55% year over year in the current quarter. Previously, the company had planned for a decrease of at least 45% year over year in the same period. The carrier expects to continue managing capacity on a rolling basis as coronavirus keeps air-travel demand suppressed.
JetBlue Airways Corporation Price
Although travel demand is significantly below year-ago levels, to take advantage of the gradually improving leisure-travel demand, JetBlue recently announced 24 new non-stop services. From Nov 19, 2020, JetBlue will initiate services connecting Newark Liberty International Airport, Aruba Queen Beatrix International Airport, Cancún International Airport, Jamaica Sangster International Airport, Bahamas Lynden Pindling International Airport, Caicos Providenciales International Airport, Punta Cana International Airport and Saint Maarten Princess Juliana International Airport.
Zacks Rank & Key Picks
JetBlue carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Transportation sector are ArcBest Corporation ARCB, JB Hunt Transport Services Inc JBHT and Knight-Swift Transportation Holdings Inc KNX. While ArcBest sports a Zacks Rank #1 (Strong Buy), JB Hunt and Knight-Swift carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest, JB Hunt and Knight-Swift have rallied 6.1%, 10.4% and 14%, respectively, so far this year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report
KnightSwift Transportation Holdings Inc. (KNX): Free Stock Analysis Report
ArcBest Corporation (ARCB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.