JetBlue (JBLU) Stock Gains as it Eyes International Flight Growth

NEW YORK (TheStreet) -- JetBlue Airways (JBLU) shares are up 1.18% to $19.77 in early market trading on Tuesday as the company is looking to purchase Airbus (EADSF) aircraft that have international flight capability, according to Reuters.

JetBlue currently mainly operates domestically, but the airline could look to expand its network in South America, according to reports.

The airline sees a potential fit for the long-range version of Airbus Group's A321neo planes, Executive VP for Commercial and Planning Marty St. George told Reuters.

The aircraft would allow the company to significantly increase its flight range without significantly increasing costs due to the fact that it already has the maintenance crews in place to service the aircraft.

St. George also said that while flights to Europe could be in the company's future plans, expansion in Latin America is its top priority right now.

The airline currently has 100 planes in the A320 family on order from Airbus for delivery through 2023.

"It's a plane we know well. If the (new) plane does what Airbus says it does, I am very excited for the airplane," St. George told Reuters, adding that the A320 and A321 make up the majority of its current fleet.

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:

"We rate JETBLUE AIRWAYS CORP (JBLU) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • JBLU's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 12.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 3900.00% and other important driving factors, this stock has surged by 84.75% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, JBLU should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • JETBLUE AIRWAYS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, JETBLUE AIRWAYS CORP increased its bottom line by earning $1.19 versus $0.51 in the prior year. This year, the market expects an improvement in earnings ($1.75 versus $1.19).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Airlines industry. The net income increased by 3325.0% when compared to the same quarter one year prior, rising from $4.00 million to $137.00 million.
  • You can view the full analysis from the report here: JBLU Ratings Report

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