JetBlue Airways | JBLU | Long at $5.92JetBlue NASDAQ:JBLU - Earnings and revenue beat today, stock drops -26% by noon.
2025 Outlook:
"For the first quarter of 2025, JetBlue expects its available seat miles (ASM) to decline 2% to 5% year-over-year, with revenue per ASM projected to range from a 0.5% decline to a 3.5% gain, while analysts had expected the metric to rise 5% year-over-year. JetBlue said it also expects cost per ASM to rise 8% to 10% in the first quarter. The airline also expects cost per ASM to rise 5% to 7% for the full fiscal year, with revenue per ASM projected to rise 3% to 6% compared to the metric staying flat in 2024."
Travel is increasing rapidly from the pandemic lows and if oil continues to drop, airlines will continue to experience a boom. This outlook may be overly negative as "protection" while the company further moves toward profitability.
My only concern is there is a price gap on the daily chart near $4.00 that is still open (and could be filled in the near future. But, from a technical analysis perspective, the bottom of my historical simple moving average line today is $5.90. It may bounce there, or shakeout shareholders for a while to test the $4 range. Regardless, JetBlue is a mid-level ranked airline that is, indeed, moving toward profitability - it may just take it getting through 2025 to gain investor confidence.
Initial entry position started at $5.92.
Target:
$7.95
