Here's Why Investors Should Retain JBLU Stock in Their Portfolio Now

JetBlue Airways JBLU benefits from robust operational efficiency and customer-friendly initiatives. The company’s efforts toward network optimization are also encouraging. However, high labor costs are hurting JBLU’s prospects.Factors Favoring JBLU StockIn 2024, JetBlue made significant strides in operational performance. In the fourth quarter of 2024, the airline boosted on-time performance by six percentage points and saw a nearly ten-point increase in customer satisfaction. Additionally, JetBlue made a remarkable leap in the Wall Street Journal’s 2024 Airline Rankings, rising three spots from last place in 2023 to 6th overall.The introduction of the JetBlue Premier Card is a strategic initiative aimed at bolstering customer loyalty and attracting high-value, frequent travelers. By leveraging the premium card's annual fee and rewards program, JetBlue is poised to drive additional revenues and enhance long-term customer retention. This move not only strengthens the airline's market position but also elevates its brand value and profitability. With appealing benefits for loyal customers and tapping into the rising demand for premium travel products, JetBlue is reinforcing its competitive edge and improving its growth prospects.The airline optimized around 20% of its network in 2024, with significant changes taking place between October 2024 and January 2025. This included the closure of 15 BlueCities and the introduction of new services to various destinations, indicating a more strategic and focused approach to its routes. This positions JetBlue well for sustainable growth. The airline’s actions to improve service quality and operational efficiency, coupled with solid financial management, are likely to bolster investor confidence and contribute to long-term shareholder value.Owing to such tailwinds, JBLU’s shares have rallied 53.7% in six months compared with its industry’s 30.5% growth.Image Source: Zacks Investment ResearchJBLU: Key Risks to WatchThe northward movement in expenses on labor is hurting JetBlue’s bottom line by pushing up operating costs. Operating expenses were up 1.2% in 2024, with expenses on salary, wages and benefits escalating 6.8%. Owing to the uptick in labor costs, management expects first-quarter 2025 CASM, excluding fuel and special items, to climb 8-10%. For 2025, CASM, excluding fuel and special items, is predicted to be up in the 5-7% range. Share price volatility is another concern.JetBlue’s Zacks RankJBLU currently carries a Zacks Rank #3 (Hold).Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Golar LNG Limited (GLNG) and SkyWest (SKYW).Golar LNG currently sports a Zacks Rank #1 (Strong Buy). GLNG has an expected earnings growth rate of 16.1% for the current year. You can see the complete list of today’s Zacks #1 Rank stocks here.The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 30.2%. Shares of GLNG have risen 88.9% in the past year.SkyWest currently sports a Zacks Rank #1 and has an expected earnings growth rate of 16% for the current year.The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 16.7%. Shares of SKYW have climbed 68.3% in the past year.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.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 >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report Golar LNG Limited (GLNG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks