NEW YORK (TheStreet) -- JetBlue Airways (JBLU) rose 1.71% to $8.90 at 11:52 a.m. on Thursday after the company announced it would sell its in-flight entertainment service, LiveTV, to French defense company Thales Group for $400 million as it tries to cut costs.
High maintenance and repair costs have weighed down JetBlue, which has 80% of its business in the U.S. Northeast, in the past few quarters. The airline also announced earlier this week that it canceled nearly 4,000 flights because of winter storms.
JetBlue also said it would enter into an agreement with LiveTV to continue providing the service after the sale, which should be completed by the mid-2014.
"We believe JetBlue will benefit from reduced operating costs and capital expenditures related to running LiveTV as a subsidiary," JetBlue CFO Mark Powers said in a statement.
TheStreet Ratings team rates JETBLUE AIRWAYS CORP as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate JETBLUE AIRWAYS CORP (JBLU) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."