Does JetBlue Airways Corporation (JBLU) Benefit From The Air Travel Boom?

We recently compiled a list of the Top 10 Airline Stocks Benefiting From The Air Travel Boom. In this article, we are going to take a look at where JetBlue Airways Corporation (NASDAQ:JBLU) stands against the other airline stocks.

The aviation sector wasn’t short of optimism heading into the new year as air travel demand reached pre-covid highs and the holiday season showed promise. That optimism is now turning into reality as Delta Airlines announced its Q4 earnings result and surprised to the upside. The announcement has spurred a rally across airline stocks as expectations of other companies posting an earnings beat rise.

Delta reported improved operating margins of 12% vs 9.9% from a year ago. It improved the revenue per available seat mile from $0.1995 a year ago to $0.2004 in the last quarter. All of its international regions showed sequential improvement as revenue generated from international passengers grew at 6%. The company has also improved its guidance for the first quarter to $0.85 at the midpoint to the prior $0.76.

We now look at how this may affect other stocks across the industry.

A commercial jetliner at an airport gate with passengers waiting in the background.

JetBlue Airways Corporation (NASDAQ:JBLU)

JetBlue continued to post a loss last year. However, the company continues to propel itself forward as showcased by its 50%+ returns in a year. One of the reasons for this outperformance was its healthy balance sheet. The company has $4.1 billion in cash and financial support, which helps it focus on its business without worrying about the financials.

JBLU’s bullish thesis is all about its JetForward plans for 2027. It aims to achieve $900 million in EBIT by that year, as promised by the company’s CFO Ursula Hurley:

As I look to next year, I remain confident we have the right foundation to begin delivering results on our $800 – $900 million EBIT target.

The current market cap of just under 2.7 billion means the company is trading at an EBIT multiple of just 3! This is a great value that could bring massive returns in 2025 if the stock re-rates.

Overall JBLU ranks 5th on our list of the to airlines stocks benefiting from the air travel boom. While we acknowledge the potential of JBLU as an investment, our conviction lies in the belief that some 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 as promising as JBLU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.