Airline company JetBlue (NASDAQ:JBLU) is strategically overhauling its flight operations, pulling back from less profitable routes and sharpening its focus on more lucrative ones. This strategic shift includes reducing daily departures from Los Angeles International Airport and discontinuing flights to several major South American cities, as well as Kansas City, Missouri.
Additionally, the airline will stop operations on certain routes from Fort Lauderdale to various U.S. cities, alongside flights between New York and Detroit. The airline intends to concentrate on routes across the East Coast, Caribbean, and transcontinental flights.
The airline’s decision to streamline its operations follows recent board-level changes influenced by activist investor Carl Icahn. Icahn secured two seats on JetBlue’s board after disclosing an almost 10% stake in the company. His involvement highlights his belief in the airline’s undervalued stock and potential for growth.
Is JBLU a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on JBLU stock based on two Buys, four Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 1.5% decline in its share price over the past year, the average JBLU price target of $6.07 per share implies 9.54% downside risk.
