Back to top

Image: Bigstock

JetBlue (JBLU) Aims for Net-Zero Carbon Emissions by 2040

Read MoreHide Full Article

In an environment-friendly move, JetBlue Airways Corporation (JBLU - Free Report) entered into an agreement with World Fuel Services and World Energy for the supply of Sustainable Aviation Fuel (“SAF”) at Los Angeles International Airport (“LAX”). This is in line with JetBlue’s target of achieving net-zero carbon emissions by 2040. SAF is one of the most promising way to rapidly reduce air travel emissions and help the aviation industry move toward net-zero goals.

World Energy (industry’s first commercial-scale producer of SAF) will supply the fuel from its facility in Paramount, Calif. Notably, JetBlue is World Energy’s second U.S. commercial airline partner to incorporate SAF into its regular operations. Delivery of SAF into LAX will be managed by World Fuel Services (JetBlue’s fuel management company). The carrier’s usage of SAF includes 1.5 million gallons of blended SAF a year for at least three years, which is about 5% of JetBlue’s LAX fuel.

LAX is one of JetBlue’s most successful and busiest markets, flying up to 40 flights per day to 23 markets this summer. The carrier also plans a robust expansion (both domestically and internationally) at LAX over the next five years — into multiple markets with targets to reach about 70 flights per day by 2025. With this, the carrier aims to broaden its airline base and reduce carbon emissions effectively.

As a part of its decarbonization strategy, the carrier aims to reduce aircraft emissions 25% per available seat mile (ASM) by 2030 from 2015 levels. Moreover, the airline aims to increase the usage of sustainable energy to convert 10% of total jet fuel to be from blended SAF by 2030 and also convert 40% of three main ground service equipment vehicle types to electric by 2025 and 50% by 2030.

Zacks Rank & Stocks to Consider

JetBlue currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Transportation sector are Landstar System (LSTR - Free Report) , C.H. Robinson (CHRW - Free Report) and FedEx Corporation (FDX - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

Long-term (three to five years) expected earnings per share growth rate for Landstar, C.H. Robinson and FedEx is projected at 12%, 9% and 12%, respectively.
 

Published in