JetBlue and US Airways hit New Lows
On a day that saw Regional Airlines
decline as an industry 1.48%, several carriers saw brand new 52 week lows. Jet
Blue (JBLU) decreased 4.34% on the day as the airline continued to find new
selling pressure with additional reductions in earnings and high oil prices
destroying a chance for profitability. Over the past year, Jet Blue has fallen
62.9% but with a current price to earnings ratio of 24 and no earnings in
sight, the stock could continue to fall.
US Airways (LCC) saw an even worse
sell off as the company’s merger with United was called off. The stocked
dropped 8.33% on the day. Analysts expect the company to lose 8.65 on the year
and 8.69 next year. These expectations are down from a 1.03 gain expected 90
days ago and a 2.00 gain expected in the same period respectively. The stock
has fallen 89% over the past year and doesn’t have as much room as Jet Blue on
the downside. This Major Airline bucked its industries trend on a day that saw
other Majors rise 1% on average.
Watch for the stocks of the airlines
to rally if oil falls quickly in the next several weeks. If oil remains above
125, the airlines should continue to decline as their time outside of
bankruptcy is limited at these levels of fuel costs. (This is neither a buy or a
sell recommendation)