10 Worst Airline Stocks To Buy According to Short Sellers

1. JetBlue Airways Corporation (NASDAQ:JBLU)

Short Interest as % of Shares Outstanding: 19.92%

Number of Hedge Fund Holders: 19

JetBlue Airways Corporation (NASDAQ:JBLU) is a well-known U.S. airline and has a fleet of Airbus, along with a few others.

It has developed into a significant operator in the airline industry, operating over 1,000 flights daily to more than 100 destinations across North America, the Caribbean, and Europe.

One of the important aspects that set the company apart from its competitors is its commitment to customer satisfaction, which includes offering amenities like in-flight entertainment and comfortable seating while maintaining a low-cost fare structure.

While it is a known airline operator, JetBlue (NASDAQ:JBLU) faced challenges in the second quarter. The company reported a 2.7% decrease in system capacity compared to the previous year, which contributed to an operating revenue drop to $2.4 billion, marking a 6.9% decline. It tops our list of the worst airline stocks according to short sellers.

Ursula Hurley, the CFO, noted that various factors impacted the company’s unit costs, including changes in compensation recognition from Pratt & Whitney and lower-than-expected capacity. However, Hurley expressed optimism about the second half of the year, emphasizing the company’s commitment to cost management and the introduction of the JetForward cost transformation program.

On September 6, TD Cowen raised the price target on JetBlue (NASDAQ:JBLU) to $6 from $5 and kept a Hold rating. The revision is owed to a more positive outlook based on the company’s guidance, which suggests improved revenue potential and anticipated cost relief stemming from favorable jet fuel prices and effective management of non-fuel expenses.

In Q2, 19 hedge funds held stakes in JetBlue (NASDAQ:JBLU), with positions worth $156.894 million. As of the second quarter, Icahn Capital LP is the most significant shareholder in the company and has a position worth $107.957 million.

While we acknowledge the potential of JetBlue Airways Corporation (NASDAQ:JBLU) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is promising and trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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