Results from JetBlue Airways (JBLU 2.47%) provided little reason for optimism, though there was an argument to be made that the post-earnings stock reaction was too great.
On Friday, investors warmed to the stock, sending JetBlue shares up 10% as of 10:45 Eastern.
A panicked reaction
JetBlue shares have been in a holding pattern of late, down about 60% from their pre-pandemic level and largely flat over the last three years. The government blocked JetBlue's plan to acquire Spirit Airlines, leaving it with few good options for growth.
The airline posted a fourth-quarter loss and provided a subdued outlook for 2025. The stock fell as much as 25% after earnings.
It is hard to get excited about JetBlue shares right now, but there is also no reason for panic. JetBlue has a plan in place to streamline operations and is in the early stages of replacing some of its older jets with new, more fuel-efficient models.
The airline also appears to have ample liquidity to stay on course and complete its restructuring.
NASDAQ: JBLU
Key Data Points
Is JetBlue stock a buy?
The good news is JetBlue does not appear to be headed toward bankruptcy, the fate of would-be merger partner Spirit Airlines. The bad news is that investors tempted to buy in now have a long journey ahead of them before this investment is likely to pay off.
Even with Friday's rally, JetBlue shares are still down about 10% for the week. That implies there could be a bit more room for the stock to run, but long-term investors would be wise to watch from the sidelines for now.
