NEW YORK (TheStreet) -- JetBlue Airways (JBLU) fell Wednesday along with other airline stocks after Lufthansa cautioned its profit would be lower than previously expected this year thanks to labor union strikes and less-than-expected revenue growth in its passenger and cargo businesses.
Lufthansa said it expects an operating profit of approximately EUR1 billion ($1.35 billion), or approximately EUR1.3 billion after adjustments. The airline had previously forecast an operating profit of EUR1.3 billion to EUR1.5 billion, with adjusted operating profit of EUR1.7 billion to EUR1.9 billion. Lufthansa cautioned about potential dangers to its earnings forecast when it reported first-quarter results in May but maintained its guidance at the time.
The news sent Lufthansa shares down approximately 10% and drove other airline stocks down, as well. JetBlue was down 1.98% to $10.42 at 11:50 a.m.
Separately, 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 some important positives, 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 solid stock price performance, revenue growth, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."