JetBlue Airways Corporation JBLU shares have gained 22.2% in the past three months, putting the durability of the rebound in focus. Better revenue trends and firmer earnings-estimate revisions have improved the near-term setup.
The rally still faces a demanding test. JetBlue remains unprofitable, fuel costs have climbed sharply and leverage is high, leaving further upside dependent on revenue gains translating into a clearer margin recovery.
JBLU’s Three-Month Gain Comes With Better Momentum
JBLU’s 12-week price change of 22.2% is backed by a 3.4% gain over the past four weeks. The stock also carries a Momentum Score of A, the strongest of its individual Zacks Style Scores.
The move has occurred while JetBlue’s commercial performance improved. Second-quarter revenue per available seat mile, or RASM, increased 10.9% year over year, while capacity rose 3.2%, showing that unit revenues advanced faster than available seat miles.
JetBlue’s Earnings Revisions Are Moving Higher
The current-fiscal-year earnings estimate increased 7.7% over four weeks and 21.9% over 12 weeks. That direction is relevant because the Zacks Rank is driven by earnings-estimate revisions, giving the recent price momentum a firmer estimate backdrop.
JetBlue also posted a 5.7% earnings surprise in the second quarter. The result was still a loss of 66 cents per share, however, so upward revisions should be viewed as an improvement in expectations rather than proof that profitability has returned.
JBLU’s Revenue Outlook Supports the Bull Case
Management expects third-quarter RASM to rise 12.5-16.5% year over year on capacity growth of 3-6%. For full-year 2026, JetBlue forecasts RASM growth of 10-12.5% while capacity is expected to increase 1.5-3.5%.
Premium and loyalty demand also matter in the broader airline backdrop. Delta Air Lines DAL reported 17% growth in second-quarter premium-product ticket revenues, while United Airlines Holdings UAL reported 14% first-quarter premium revenue growth. JetBlue’s own premium RASM rose about 13% in the second quarter.
JetBlue Still Faces Fuel and Leverage Risks
Second-quarter aircraft fuel expense surged 80.7% year over year to $911 million as the average fuel cost per gallon increased 76.3% to $4.23. Total operating expenses rose 20.8%, contributing to a $141 million operating loss.
Debt and financing costs add another constraint. Total debt was about $8.48 billion at June 30, 2026, while 2026 interest expense is expected to be about $590 million. JetBlue still projects a negative adjusted operating margin of 2-5% for the year.
JBLU’s Mixed Scores Temper the Rally Case
The rally has better support than it did earlier, but the investment picture remains mixed. Stronger unit-revenue growth, positive estimate revisions and JetForward progress can sustain interest in the shares, while fuel volatility, losses and debt leave little room for execution slippage.
JBLU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its Momentum Score of A contrasts with a Value Score of D, Growth Score of F and VGM Score of F. The combination favors patience: momentum is favorable, but the broader Style Score profile does not yet provide the kind of all-around confirmation associated with top-ranked stocks.
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
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United Airlines Holdings Inc (UAL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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