Citi downgraded JetBlue Airways to Sell from Neutral and lowered its price target to $5.30 from $6.60, citing softer leisure-travel demand and downside risk to leisure revenue per available seat mile into the autumn. The note from analyst John Godyn came as the bank judged JetBlue’s leisure-heavy network to be more exposed than larger US carriers and estimated about 14% downside from the stock’s prior close.
The downgrade reflects a more cautious view of the carrier’s near-term earnings and valuation rather than a fresh operational miss. JetBlue reported second-quarter results on 28 July, with revenue up 14.5% and RASM up 10.9%, but Citi highlighted fading momentum as inflation pressure and the reduced prospect of a meaningful industry consolidation catalyst weigh on the outlook. The bank also favours Delta Air Lines, United Airlines and American Airlines in the current backdrop.