Welcome

JetBlue Expands Use of Sustainable Aviation Fuel at LAX

In its endeavor to achieve net-zero carbon emissions by 2040, JetBlue Airways (JBLU) has entered into a partnership with World Fuel Services and World Energy to expand the use of sustainable aviation fuel (SAF) at Los Angeles International Airport (LAX).

JetBlue’s increased usage of SAF includes 1.5 million gallons of blended SAF a year for at least three years.

At LAX, JetBlue is receiving SAF from World Energy’s facility in Paramount, California, while World Fuel Services, which is JetBlue’s fuel manager, is handling the delivery.

The Director of Sustainability and Environmental Social Governance at JetBlue, Sara Bogdan, said, “We are focused on growing our use of sustainable aviation fuel to replace conventional fossil-based jet fuel in our focus cities as it becomes available. It has not historically had the same policy support as other low-carbon fuels and comes at a premium today. We’re excited by the prospect of additional policy support to help grow and scale sustainable aviation fuel, helping to usher in a lower-carbon future for aviation.”

JetBlue’s decision to use SAF at LAX follows the same move at San Francisco International Airport (SFO) with another supplier. (See JetBlue stock chart on TipRanks)

Two months ago, Morgan Stanley analyst Ravi Shanker maintained a Buy rating on the stock with a price target of $30 (81.8% upside potential).

The analyst said, “JBLU remains one of our favorite names in the space on exposure to the reopening trade, potential to capitalize on cycle upside, the cost-cutting story but most importantly, idiosyncratic opportunities we see on the revenue side from four catalysts — international launch, travel products, American Airlines (AAL) alliance, co-brand card revamp.”

Overall, the stock has a Moderate Buy consensus based on 5 Buys, 4 Holds and 1 Sell. The average JetBlue Airways price target of $22.18 implies 34.4% upside potential. The company’s shares have gained 62.2% over the past year.

Related News:
Tencent Music’s Label Exclusivity at Risk, Stock Falls 4% – Report
FedEx Using Nuro Autonomous EVs for Deliveries
Werner Opens New Terminal in Pennsylvania