What’s Causing JetBlue Stock’s 62% Decline Since 2019?

Despite a 9% increase this year, jetblue airways stock (NASDAQ
NDAQ
:JBlu) looks like it may be looking higher. JetBlue’s stock has soared from $6.50 in early January to $7.04 now. This performance is in line with the 7% return for the broad S&P500 Index. Looking a little longer, JBLU stock is down 62% from levels seen in late 2019. it can be attributed to 1. The company’s P/S ratio, which fell 62% to 0.3x from 0.7x in 2019, 2. Its average shares outstanding rose 14% to 327 million, partially offset by 3. 13% increase in jetblue airways revenue up to $9.2 billion—our interactive dashboard, Why JetBlue Airways Shares Went DownThere are more details.

JetBlue earns its revenue primarily from the sale of air tickets and other ancillary services such as freight and mail. The increase in revenue in recent years can be attributed to a return in demand for air travel, with meaningful growth in passenger traffic and ticket yield over the past few years. JetBlue’s available seat miles fell from 63.8 million in 2019 to 32.7 million in 2020, rising to 64.5 million in 2022. The company’s average passenger earnings per seat mile fell from 12.20 cents in 2019 to 8.36 cents in 2020, reaching 13.32 cents in 2022. The demand for air travel is expected to remain high in the near future
near
Term, the near future bodes well for JetBlue.

JetBlue’s operating margin was 9.5% in 2019 before the pandemic, and fell to -63.2% in 2020 before recovering to -4.6% in 2022. Our jetblue airways operating income comparison There are more details in the dashboard. Looking at valuations, we find that JBLU stock has high potential for growth. we guess JetBlue Airways Evaluation $8 per share, representing an approximately 18% upside to the current market price, represents a 0.3x P/S multiple on a TTM revenue basis.

JetBlue stock has been weighed down over the past year by concerns about its proposed acquisition of Spirit Airlines
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, JetBlue and Spirit agreed to merge last year in a $3.8 billion deal. However, last month, the Justice Department filed a lawsuit to block the proposed merger of JetBlue and Spirit, saying it would increase fares. ^[1]

While JBLU stock may have more room for growth, it’s helpful to look at how jetblue airways partner Hire on metrics that matter. You’ll find other valuable comparisons for companies from different industries here peer comparison,

Furthermore, the COVID-19 crisis has created several pricing anomalies that could provide lucrative trading opportunities. For example, you’d be surprised how counter-intuitive stock valuations are. FedEx vs Amcor,

With inflation rising and the Fed raising interest rates, among other factors, JBLU stock has fallen 48% over the past twelve months. Can it fall further? Compare the declines in previous market crashes to see how far JetBlue Airways stock can go. Here is the performance summary of all the stocks in the past market crashes.

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