JetBlue Airways (JBLU) Stock Falling as Airline Sector Tumbles

NEW YORK (TheStreet) -- Shares of JetBlue Airways Corp. (JBLU) are down by 6.25% to $19.21 in early afternoon trading on Monday, as the airline sector takes a hit following comments made by American Airlines (AAL) CEO Doug Parker at the International Air Transportation's annual general meeting in Miami, and some ratings downgrades.

Parker told Reuters that he is concerned about growing airline capacity depressing profits.

"The real question is, is this a one-time catch up for fuel prices being lower or is this airlines behaving like airlines used to and just increasing capacity because times are good," Parker said when asked about investor concerns regarding capacity increases exceeding a growth in demand.

Additionally, a few of JetBlue's rivals received ratings downgrades at Raymond James this morning.

American Airlines was lowered to "market perform" from "outperform." Both Delta Air Lines (DAL) and United (UAL), were reduced to "outperform" from "strong buy."

"While we believe that the U.S. airline industry is maintaining capacity discipline, we now expect the recovery in pricing heading into the seasonally stronger summer months to be somewhat muted vs. previous expectations due to the softer than expected U.S. economic growth and American's aggressive pricing response to Southwest's capacity growth impacting markets beyond Dallas," Raymond James said in an analyst note, MarketWatch reports.

Separately, TheStreet Ratings team rates JETBLUE AIRWAYS CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

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