JetBlue Airways has Sufficient Near-Term Liquidity Despite Higher Jet Fuel Prices, UBS Says

MT Newswires Live10-19

JetBlue Airways (JBLU) has sufficient near-term liquidity even if a spike in jet fuel prices pressures its free cash flow, UBS analysts said in a Monday note.

Analysts said that the airline's risk-reward is now balanced after a recent stock sell-off.

UBS forecasts JetBlue to raise $1 billion in gross debt in 2027, as it believes the company has unencumbered aircraft assets to raise this debt and also has undrawn revolver.

Analysts said that the airline has several levers to manage through most of 2027, but it will require stable demand and lower fuel costs in 2028 to turn free cash flow positive.

UBS upgraded the stock's rating to neutral from sell, but lowered its price target to $3.50 per share from $4.

Price: 2.97, Change: +0.04, Percent Change: +1.37

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Comments

  • Nate55
    10-21
    Nate55
    Don't get sucked in like shareholders this time last year, their forecast was wrong in a big way...they've operated at loss all this year. Aviation gas increased in price and cost of production this quarter, the price may av reduced from highs hwever its greater than last quarter. They want 2028 price of fuel meanwhile getting sludge from Venezuela and the crap stuff from tarsands..isn't any wonder it's harder ta produce jet fuel. 
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