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Petroleum industry

JetBlue Shares Rise as Crude Prices Fall

Strategic Insights

— 2 min read

JetBlue shares are up 1.63% to $24.40 in afternoon trading on Monday as falling crude prices help lift the entire airline sector. The price decline follows a report from Baker Hughes that the number of U.S. oil rigs rose for the fourth consecutive week, signaling that the global oversupply of oil is not showing signs of abating. This news comes on the heels of JetBlue's own report last week, which showed that its July traffic increased 8.9% over the previous year, while capacity grew 10.4% in the month.

Key Takeaways:

  • JetBlue shares are up 1.63% to $24.40 in afternoon trading on Monday.
  • Falling crude prices have led to a decline in oil prices, with light, sweet crude for September delivery down 0.14% to $42.44 per barrel.
  • Industry standard Brent crude for September delivery is down 0.26% to $49.06 per barrel, while West Texas crude for September delivery is down 0.38% to $42.34 per barrel.
  • JetBlue reported a 8.9% increase in July traffic over the previous year, while capacity grew 10.4% in the month.
  • Passenger revenue per available seat mile, a key metric in the industry, grew 1% in the period.
  • TheStreet Ratings team rates JETBLUE AIRWAYS CORP as a Buy with a ratings score of A.
  • The company's strengths include revenue growth, good cash flow from operations, expanding profit margins, and a largely solid financial position with reasonable debt levels.
  • The revenue growth came in higher than the industry average of 7.4%, and net operating cash flow has significantly increased by 65.29% to $362.00 million when compared to the same quarter last year.

Statistics:

  • JetBlue shares are up 1.63% to $24.40 in afternoon trading on Monday.
  • Oil prices: light, sweet crude for September delivery down 0.14% to $42.44 per barrel, industry standard Brent crude for September delivery down 0.26% to $49.06 per barrel, and West Texas crude for September delivery down 0.38% to $42.34 per barrel.
  • JetBlue reported a 8.9% increase in July traffic over the previous year.
  • Passenger revenue per available seat mile grew 1% in the period.
  • Net operating cash flow increased by 65.29% to $362.00 million when compared to the same quarter last year.
  • Revenue growth came in higher than the industry average of 7.4%.
  • The company's debt-to-equity ratio is 0.73, which is less than the industry average.

Sources:

  • TheStreet
  • Baker Hughes
  • JETBLUE AIRWAYS CORP
  • TheStreet Ratings Team
  • New York Mercantile Exchange

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