Here's Why Investors Should Retain JetBlue Airways Stock Now

JetBlue Airways’ JBLU proactive cost-cutting initiatives are boosting operational efficiency. Efforts to modernize its fleet are also encouraging. However, the company’s struggle on the top-line front is concerning.Factors Favoring JBLUIn the third quarter of 2024, total operating expenses were down by 4.2% year over year. JBLU’s structural cost program has also progressed well over the year, achieving $24 million in savings in the third quarter and year-to-date savings of $169 million.Moreover, JBLU’s JetForward strategy, which focuses on improving service, expanding the Northeast leisure network and managing costs to offer more value, is boosting its prospects. The program is expected to drive an $800-$900 million EBIT uplift by 2027.The company’s fleet modernization efforts are commendable, having received six A220 aircraft in the third quarter of 2024, with seven more expected in the fourth quarter of 2024, bringing the total to 27 for the year. The fleet upgrade program, which was increased from $75 million to $100 million, has saved $95 million by avoiding engine maintenance on the older E190 fleet. These savings will continue until the full retirement of the E190s in 2025. JBLU plans to spend around $450 million in the fourth and $1.6 billion for the year, reflecting strong investment in fleet expansion and modernization.Owing to such tailwinds, JBLU shares have risen 25.6% year over year compared with the industry’s growth of 17.9% in the same period.Image Source: Zacks Investment ResearchJBLU: Key Risks to WatchJetBlue's top line is suffering due to a 2% decline in consolidated traffic (measured in revenue passenger miles) to 14.49 billion in the third quarter of 2024. Capacity (measured in available seat miles) declined 3.6% to 16.74 billion.In the third quarter of 2024, interest expenses rose 89% year over year. The company’s high debt levels are concerning.Image Source: Zacks Investment ResearchJBLU’s Zacks RankJBLU currently carries a Zacks Rank #3 (Hold).Stocks to Consider Investors interested in the Zacks Transportation sector may consider Westinghouse Air Brake Technologies WAB and SkyWest SKYW.Westinghouse Air Brake Technologies currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  WAB has an expected earnings growth rate of 2.01% for the current year.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 9.46%. Shares of WAB have risen 70.6% in the past year.SkyWest currently sports a Zacks Rank #1 and has an expected earnings growth rate of 4.07% 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 79.12%. Shares of SKYW have climbed 140.9% in the past year.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Westinghouse Air Brake Technologies Corporation (WAB): 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