Why JetBlue Stock Keeps Going Up
Key Points
JetBlue stock is benefiting from a decline in oil prices today.
Investors are betting on the prospect for an end to the Iran war.
JetBlue expects to lower its losses regardless of fuel prices this quarter.
Believe it or not, JetBlue (NASDAQ:JBLU) stock is looking pretty green these days.
Shares of the discount airline gained more than 20% last week after reporting earnings that showed the company continuing to report sales declines and losses, but promising that things will improve in 2027 -- and that by 2028, JetBlue might be free cash flow-positive.
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And now, there's a new catalyst lifting JetBlue stock, sending the stock up 11.6% through 12:05 p.m. ET.
Image source: Getty Images.
Oil prices plunge
WTI crude oil prices plunged 7% Monday, and Brent crude prices fell even further -- down 7.4% to $105 a barrel. The reason, as it's been off and on for months, is new reports of a potential peace deal in the Middle East that would end the Iran war and lower the threat level against oil tankers. As OilPrice.com reports, Iranian President Masoud Pezeshkian said on Monday that Tehran "will try to resolve the problem with dialogue."
Whether this proves true or is just another false alarm, investors need to factor even the possibility of peace into their equations. That's why oil prices are falling today, and it's at least part of the reason why JetBlue stock (which buys a lot of oil-based jet fuel for its airplanes) is up again today.
What's next for JetBlue stock
Will the gains hold? To the extent it benefits from lower oil prices, that's a factor largely out of JetBlue's control. The good news for investors is that JetBlue is making progress on the factors it can control.
Management is already growing revenues nicely, and JetBlue president Marty St. George said that even if oil prices remain high, its losses will continue to shrink in Q4 2026. That's still a far cry from saying JetBlue will be profitable, however. I remain unconvinced that JetBlue stock is a buy.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.