Shares of JetBlue Airways (JBLU - Free Report) declined 7.67% on Dec 13, closing the trading session at $7.10 per share. The downside was due to the warning of air-travel demand being not as strong as expected for the month of December.
With hurricane Nicole impacting operations, close-in demand for the final month of the year has been weaker than expected. Apart from the hurricane, the holiday calendar timing this year had a greater-than-expected negative impact.
As a result, JBLU now anticipates revenue per available seat mile for the fourth quarter of 2022 to be at the low-end of its earlier guided range of 15-19% increase from fourth-quarter 2019 actuals. Other aspects of the fourth-quarter guidance are unchanged.
Capacity is still anticipated to increase in the 1-4% range from fourth-quarter 2019 actuals. CASM, excluding fuel and special items, is predicted to rise 8.5-10.5%. For fourth-quarter 2022, JetBlue still expects fuel price per gallon to be $3.65.
JetBlue’s disappointing comments on air-travel demand for the month of December resulted in declination of shares of most other airline companies on Dec 13. The NYSE Airline index lost 2.96% of its value yesterday, as most of its constituents ended the day in the red.
Zacks Rank & Key Picks
JetBlue Airways currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Transportation sector include the following:
Covenant Logistics (CVLG - Free Report) : CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.
The gradually improving freight market scenario is a tailwind to Covenant. CVLG’s cost-control efforts are appreciated as well. CVLG currently sports a Zacks Rank #1. The stock has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 10.1% upward over the past 60 days.
Teekay Tankers (TNK - Free Report) : TNK is being well-served by the increase in tanker rates. A gradual ramp-up in economic activities also bodes well. High fuel costs are, however, weighing on the bottom line.
Teekay Tankers currently sports a Zacks Rank #1. TNK’s shares have soared 160% in a year’s time. Over the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved 87.6% north.
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Shares of JetBlue Airways (JBLU - Free Report) declined 7.67% on Dec 13, closing the trading session at $7.10 per share. The downside was due to the warning of air-travel demand being not as strong as expected for the month of December.
With hurricane Nicole impacting operations, close-in demand for the final month of the year has been weaker than expected. Apart from the hurricane, the holiday calendar timing this year had a greater-than-expected negative impact.
As a result, JBLU now anticipates revenue per available seat mile for the fourth quarter of 2022 to be at the low-end of its earlier guided range of 15-19% increase from fourth-quarter 2019 actuals. Other aspects of the fourth-quarter guidance are unchanged.
Capacity is still anticipated to increase in the 1-4% range from fourth-quarter 2019 actuals. CASM, excluding fuel and special items, is predicted to rise 8.5-10.5%. For fourth-quarter 2022, JetBlue still expects fuel price per gallon to be $3.65.
JetBlue’s disappointing comments on air-travel demand for the month of December resulted in declination of shares of most other airline companies on Dec 13. The NYSE Airline index lost 2.96% of its value yesterday, as most of its constituents ended the day in the red.
Zacks Rank & Key Picks
JetBlue Airways currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Transportation sector include the following:
Covenant Logistics (CVLG - Free Report) : CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.
The gradually improving freight market scenario is a tailwind to Covenant. CVLG’s cost-control efforts are appreciated as well. CVLG currently sports a Zacks Rank #1. The stock has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 10.1% upward over the past 60 days.
Teekay Tankers (TNK - Free Report) : TNK is being well-served by the increase in tanker rates. A gradual ramp-up in economic activities also bodes well. High fuel costs are, however, weighing on the bottom line.
Teekay Tankers currently sports a Zacks Rank #1. TNK’s shares have soared 160% in a year’s time. Over the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved 87.6% north.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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