12 Best Aviation Stocks to Buy According to Hedge Funds

7. JetBlue Airways Corporation (NASDAQ:JBLU)

Number of Hedge Fund Investors: 28

Revenue Growth Rate (year-over-year): 4.99%

JetBlue Airways Corporation (NASDAQ:JBLU) is a budget airline that provides excellent services, such as in-flight entertainment and assigned seating, making it one of the best airline stocks. It provided service to around 100 locations in the US, the Caribbean, Latin America, Canada, and England. Aircraft types currently operated by the firm include the Embraer E190, Airbus A320, Airbus A321, and Airbus A321neo. The company’s operating segments include Atlantic, Caribbean & Latin America, and Domestic & Canada. The Domestic & Canada division generates the majority of revenue.

In Q3 of 2024, JetBlue Airways Corporation’s (NASDAQ:JBLU) revenue increased by 0.51% YoY because of strong demand during peak hours, improved close-in bookings, and lower competitive capacity in the Latin area. The company achieved a 4.3% year-over-year increase in unit revenue, improved its adjusted operating margin by about five points, and secured about $4.1 billion in liquidity while continuing initiatives like sustainable aviation fuel supply agreements and structural cost savings. These accomplishments were all part of the firm’s significant progress on its JetForward strategy.

Brandon Oglenski, an analyst at Barclays, increased the price objective for JetBlue Airways Corporation (NASDAQ:JBLU) from $5 to $7. According to the company, airline fundamentals will “turn sharply positive” in 2025 and would probably lead to a “much more favorable market perception for the group,” which might allow for significant share price growth for the leaders in the sector, Delta, United, and Alaska. In a research note, the analyst warned investors that a “powerful rally in airline equities looking into next year” may be fueled by the convergence of strengthening airline fundamentals and market optimism. The “winners will keep winning,” according to Barclays. As capacity growth slows in 2025, low-cost carrier rivalry shifts and the “moats grow deeper for the winners in the industry,” the company argues that airlines offer substantial upside potential.

Carl Icahn’s Icahn Capital LP was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 17.78 million shares worth $116.29 million as of Q3.