JetBlue (JBLU) Stock Rises 15% in 6 Months: More Upside Ahead?

Company Overview - JetBlue Airways (JBLU) shares have increased by 15% over the past six months, outperforming the industry growth of 10.2% and the S&P 500's rise of 17.2% during the same period [1] - The airline currently has a market capitalization of $1.99 billion [1] Financial Performance - JetBlue has shown strong passenger volumes due to high air travel demand, contributing to its growth [1] - The company has a Zacks Rank of 3 (Hold) and has beaten earnings estimates in three of the last four quarters, with an average beat of 4.77% [1] Future Outlook - Management expects a decline in second-quarter revenues for 2024 to be between 6.5% and 9.5% year-over-year, an improvement from previous guidance [2] - Capacity is anticipated to decline in the 2-4% range, better than the prior forecast of 2-5% [2] - Non-fuel unit costs are expected to increase by 5-7%, down from a previous expectation of 5.5-7.5% [2] - Average fuel cost per gallon is projected to be between$ 2.85 and $2.95, improved from the earlier range of$ 2.98 to $3.13 [2] Cost Management - The company aims to save$ 75 million through its fleet modernization program by the end of 2024 [3] - JetBlue is actively working to reduce its debt load [3] - High labor costs remain a significant challenge, with expectations for non-fuel unit costs to increase in the mid-to-high single-digit range from 2023 actuals [3] Investment Considerations - Investors in the transportation sector may also consider SkyWest (SKYW) and Kirby Corporation (KEX) as potential investment opportunities [4] - SkyWest has a Zacks Rank of 1 (Strong Buy) with an expected earnings growth rate of 787% for the current year [5] - Kirby Corporation holds a Zacks Rank of 2 (Buy) with an expected earnings growth rate of 42.5% for the current year [5]