Back to top

Analyst Blog

JetBlue Airways Corporation (JBLU - Analyst Report) continues to strengthen its network in the Latin American region with the introduction of a new non-stop service from Fort Lauderdale to Lima in Peru. Lima is the fourth Latin American destination for JetBlue, and the southernmost for the carrier.

New York’s home grown airlines will use an Airbus A320 aircraft to provide service to the destinations and will take approximately 6 hours on the either way trip. The flight is strategically timed to connect with other destinations in the U.S. and Latin America.

The flight was launched on the fifteenth anniversary of the Open Skies agreement between the U.S. and Peru, which continues to be an important trade and tourist destination in Latin America.

Notably, with a low cost structure, the company continues to successfully expand its network footprint in Latin America and the Caribbean. The Latin America and Caribbean markets comprise almost one-third of the company’s total network. Recently, the company introduced a new flight service between Chicago and San Juan in Puerto Rico, where the company is the largest U.S. carrier in terms of capacity.

Similarly, the company is also banking heavily on the new services offered from Fort Lauderdale-Hollywood International Airport to different Caribbean and Latin American destinations.

Rival carrier Southwest Airlines Co. (LUV - Analyst Report) is also looking to tap the opportunity in the international market with its debut in the Caribbean, Central America, Latin America and Mexican markets by 2015. We believe that continuous route launches will allow JetBlue to hold a significant edge over its rival in these markets.

JetBlue displayed better traffic across its network for the month of Oct 2013. The carrier reported revenue passenger miles (RPM) growth of 7.1% while capacity grew 3.1%. Passenger revenue per available seat mile (PRASM) also increased 4% year over year.

JetBlue currently carries a Zacks Rank #2 (Buy). Other stocks worth considering within this sector are U.S. Airways Group Inc. and Spirit Airlines Inc. (SAVE - Snapshot Report). Both the stocks currently carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
THE PANTRY… PTRY 21.02 +2.09%
INTEL CP INTC 35.15 +1.88%
PIPER JAFFR… PJC 54.54 +1.70%