JetBlue Airways (NASDAQ:JBLU) Shares Gap Down on Disappointing Earnings

JetBlue Airways Corporation (NASDAQ:JBLU)’s share price gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $5.08, but opened at $4.73. JetBlue Airways shares last traded at $4.8650, with a volume of 8,702,850 shares.

The transportation company reported ($0.49) EPS for the quarter, missing the consensus estimate of ($0.45) by ($0.04). The firm had revenue of $2.24 billion during the quarter, compared to analyst estimates of $2.22 billion. JetBlue Airways had a negative net margin of 6.64% and a negative return on equity of 24.93%. JetBlue Airways’s revenue for the quarter was down 1.4% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.21) EPS.

Key Headlines Impacting JetBlue Airways

Here are the key news stories impacting JetBlue Airways this week:

• Positive Sentiment: JPMorgan raised its price target on JBLU from $5.00 to $6.00 and kept a “neutral” rating, implying roughly 19% upside from the current price — a near-term catalyst supporting the stock. Benzinga
• Neutral Sentiment: JetBlue published its Q4 press release and slide deck emphasizing operational progress (JetForward reliability and customer improvements) even as headwinds persist; management framed 2025 as a transitional year. Business Wire: Q4 Results
• Negative Sentiment: Reuters reports the quarterly loss widened and demand for economy seats was muted, triggering an earlier sharp drop in the shares — the headline EPS miss and softer demand are key negative drivers. Reuters: Quarterly Loss Exceeds Forecasts
• Negative Sentiment: Coverage and call transcripts underline that JetBlue reported a $0.49 loss per share (worse than the $0.45 consensus) and revenue was slightly down year-over-year — rising costs and softer unit demand weigh on near-term profitability. MSN: Earnings Call Transcript
• Negative Sentiment: Analyst commentary (TipRanks, Proactive, WSJ, Zacks) highlights a high-risk turnaround, softer economy demand, and margin pressure — all factors that increase execution risk and could cap upside until consistent profit recovery is visible. TipRanks: High-Risk Turnaround

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on JBLU shares. TD Cowen lifted their price objective on JetBlue Airways from $4.00 to $5.00 and gave the company a “hold” rating in a report on Wednesday, January 7th. JPMorgan Chase & Co. lifted their price objective on shares of JetBlue Airways from $5.00 to $6.00 and gave the company a “neutral” rating in a research note on Wednesday. Susquehanna upped their target price on JetBlue Airways from $4.55 to $5.00 and gave the stock a “neutral” rating in a research note on Friday, January 9th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of JetBlue Airways in a report on Thursday, January 22nd. Finally, Morgan Stanley lowered their price target on JetBlue Airways from $8.00 to $7.00 and set an “equal weight” rating for the company in a report on Monday, December 8th. Six investment analysts have rated the stock with a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat, JetBlue Airways presently has a consensus rating of “Reduce” and an average target price of $5.02.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of JBLU. Caitong International Asset Management Co. Ltd boosted its holdings in shares of JetBlue Airways by 639.1% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 5,839 shares of the transportation company’s stock valued at $29,000 after acquiring an additional 5,049 shares in the last quarter. Bogart Wealth LLC raised its position in JetBlue Airways by 12,727.3% in the third quarter. Bogart Wealth LLC now owns 7,055 shares of the transportation company’s stock valued at $35,000 after purchasing an additional 7,000 shares during the last quarter. HUB Investment Partners LLC acquired a new stake in shares of JetBlue Airways during the second quarter valued at about $45,000. Wealth Enhancement Advisory Services LLC bought a new stake in shares of JetBlue Airways during the second quarter worth about $47,000. Finally, Merit Financial Group LLC acquired a new position in shares of JetBlue Airways in the fourth quarter valued at approximately $47,000. 83.71% of the stock is currently owned by institutional investors and hedge funds.

JetBlue Airways Price Performance

The company has a 50 day moving average price of $4.82 and a 200-day moving average price of $4.75. The company has a market cap of $1.83 billion, a price-to-earnings ratio of -3.82 and a beta of 1.78. The company has a quick ratio of 0.77, a current ratio of 0.82 and a debt-to-equity ratio of 3.42.

JetBlue Airways Company Profile

JetBlue Airways Corporation is a low-cost scheduled passenger airline headquartered in Long Island City, New York. Since commencing service in 2000, the carrier has built a reputation for combining competitive fares with enhanced onboard amenities, including free in-flight entertainment, complimentary snacks and beverages, and onboard Wi-Fi. JetBlue operates a single fleet type of Airbus A320 family and Embraer 190 aircraft, which supports its focus on efficiency and operational consistency.

The airline’s core offerings include economy-class travel and a premium business-class product known as Mint, which features lie-flat seats, curated culinary options and elevated service on select transcontinental and international routes.