American Airlines vs. Jetblue

CASE STUDY COMPANY RESOURCES

American Airlines (AAL)

NOTES & QUESTIONS

American Airlines Stock Chart

If you would like to use a current stock chart for your project:

• Search “American Airlines stock chart” in Google.

• Click on the Yahoo! Finance link to American Airlines stock chart.

• This will show up at the top of the frst page on Google.

• Once you arrive at the stock chart you can manipulate how many years, months, or days you would like it to show.

American Airlines Balance Sheet

If you would like to use a current balance sheet for your project:

• Go to Yahoo! Finance (You don’t have to sign-in or sign-up).

• Search “American Airlines”, then click the “fnancials” tab, and then “balance sheet.”

• You can “expand all” to see the information that goes into each section and you can change it from annual to quarterly.

GOLD STUDENT CASE STUDY AMERICAN AIRLINES

ARTICLE

Returning to the skies with sustainability in mind

American Airlines News Release | April 27, 2021

Each month, American Way features an article written from the perspective of an American Airlines team member — a unique way to connect the airline’s customers with the people who care for them on life’s journey. In the April issue, Jill Blickstein shares how American is focused on long-term sustainability as the airline returns its aircraft to the skies.

The last year has been tough, to put it mildly. In upending business as usual, the pandemic has reminded us what a privilege it is to travel and experience all that our spectacular planet has to ofer. And amid the health crisis, warning signs about another crisis — the climate crisis — have grown.

As a business that today relies on fossil-based jet fuel, we recognize our responsibility to reduce our impact on the planet. And as our customers return to the skies, we are applying an extra measure of attention to work that will enable the discovery and wonder of travel for generations to come.

Guiding our eforts is a new and ambitious goal to reach net-zero carbon emissions by 2050. To achieve that goal, we know we need to make big strides on fuel efciency. We already have a young and fuel-efcient feet of aircraft, relative to our major competitors. And we want to continue to bring planes into our feet that are built for efciency. We also want to operate those planes on fight paths that are built for efciency. That means modernizing our nation’s air trafc control system, which could reduce CO2 emissions from aircraft by millions of tons each year.

The other side of the fuel efciency equation is, of course, fuel. Last year, American took its frst delivery of sustainable aviation fuel, which is made from renewable feedstocks instead of petroleum and emits 75% less carbon over its lifecycle. We want to use more sustainable fuel in our operation, but here’s the problem: It’s not yet available at scale or at a viable price point. To quicken our industry’s transition from fossil-based jet fuel to sustainable fuel, our team is working to advance public policy and market-based solutions that will help drive production and uptake.

As we pursue those long-term goals, we will rely on other tools for reducing our emissions, such as carbon ofsets. We’re proud to ofer our customers ofsets through a partnership with Cool Efect, a nonproft organization that applies extra rigor to the process of verifying that each ofsetting project they work with meets the highest possible standards. If you’d like to ofset the emissions associated with your fight, you can do so via the Cool Efect website.

Taken together, these actions represent American’s comprehensive commitment to sustainability. We know that our business has an impact on the environment, but you can be confdent knowing that American is taking steps to protect our planet while we’re taking you where you want to go. These days, our customers expect sustainability to come standard — and that’s what we expect, too.

As we continue to build our airline back as demand returns, we intend to do so with sustainability top of mind.

ARTICLE

Is American Airlines a Good Airline?

Natasha Gabrielle | June 2, 2022

As with any carrier, American Airlines has its shortcomings. But overall, it’s a solid choice for most travelers.

Many or all of the products featured here are from our partners who compensate us. This may infuence which products we write about and where and how the product appears on a page. However, this does not infuence our evaluations. Our opinions are our own. Here is a list of our partners and here’s how we make money.

If you’re planning to travel by air soon, you have a lot of airline options available. Choosing which airline brand to book a ticket with is a big decision, and your choice can impact your entire trip experience. The booking process, the type of customer service you encounter and your comfort level during the fight can signifcantly vary depending on the airline you choose. If you’re thinking of fying, you may be wondering, is American Airlines a good airline? We’ll help you better understand what to expect from this fight operator to decide if you want to book one of its fights.

NerdWallet’s airline analysis

When choosing a particular brand to fy with, comparing its oferings to other airlines in the industry is one way to make a more informed decision. What is American Airlines like? NerdWallet has analyzed important factors across major airlines, and here’s where American Airlines stands.

Loyalty program

A good loyalty program will reward you for frequent travel. When compared to other airlines, NerdWallet rates American Airlines’ overall loyalty program lower than some. With a score of 3.0, American ranked 5th, after Alaska, Hawaiian, JetBlue and Southwest, but higher than Delta, United and Frontier. Overall, it’s not a bad program.

Rank

1

Airline

Alaska

Score

4.9

2 Hawaiian 4.1

3

4 JetBlue 3.6

Southwest 3.5

5 American 3.0

6 (tie) Delta 2.8

6 (tie) United 2.8

8 Frontier 1.9

NerdWallet also compared airline loyalty programs to fnd the best program for frequent fiers. We rated the American Airlines program 2.8 out of 5. Alaska, Hawaiian, JetBlue and Southwest all ranked higher, while United received the same score. Delta and Frontier ranked even lower.

Rank Airline

1 Alaska

Score

4.9

2 Hawaiian 4.1

3 (tie) JetBlue 3.3

3 (tie) Southwest 3.3

5 American 2.8

6 United

7 Delta 2.8

2.6

8 Frontier 1.7

Airline fees

Airline fees are another important consideration. NerdWallet compared average add-on fees between carriers — including fees for checked bags, overhead carry-on bags, and seat selection. We found that American Airlines has an average add-on fee of around $49 for a one-way fare. This is higher than many other airlines, but Frontier and Spirit had the highest fees.

American Airlines’ baggage fees are typical. NerdWallet found that the average fee to add both a checked and carry-on bag for a one-way journey was $30 — the same for several other carriers. JetBlue, United, Frontier and Spirit had higher average fees.

When it comes to seat selection fees, NerdWallet found that American Airlines charges an average fee of $19 for a one way fare. This is higher than Alaska, Hawaiian, Delta, United and JetBlue. On average, American Airlines charges less than Spirit, Frontier and Southwest.

What is American Airlines like?

American Airlines fies to 350 destinations around the globe. While the airline has many destination choices, you should still consider other important factors before booking your fight.

Making reservations: You can make reservations online or by phone by calling 800-433-7300. Both of these options are available 24/7. You can also make reservations at most reservations ofces, travel centers and ticket counters, but there may be a fee to do this depending on where you’re located.

Check-in: Usually, you can check-in for your fight online or from the airline’s mobile app between 24 hours and 45 minutes before your fight’s departure (90 minutes for international fights). At most airports, you can also check-in at an airport ticket counter, curbside check-in counter or self-service kiosk. When checking in or checking bags at the airport, make sure you do so at least 45 minutes before departure for domestic trips and at least 60 minutes before international trips. Some international airports may require an even earlier check in time, so make sure to double check the requirements in advance.

Boarding: For most American Airlines fights, boarding begins 30 to 50 minutes before departure and ends 15 minutes before departure. Customers who need assistance and families with children under two can ask to board early. Airline status and ticket type typically determine boarding order, with exceptions for active duty U.S. military members and certain credit card members, such as with the Citi® / AAdvantage® Platinum Select® World Elite Mastercard® or the AAdvantage® Aviator® Red World Elite Mastercard®.

In-fight experience: Is American Airlines comfortable? Your fight experience will greatly depend on the ticket purchased. First class and business class seating vary but typically ofer more comfort and space. Some long-haul routes even ofer lie-fat seats. Paying for a Main

Cabin Extra seat will get travelers a seat pitch from 33 to 39 inches, a bit more spacious than the 30 to 32 inches in economy class. Regardless of ticket type, fights with WiFi access ofer passengers a free library of movies, music and TV shows that can be streamed from personal devices.

Loyalty program: The American Airlines AAdvantage program is a solid loyalty program. NerdWallet values AAdvantage miles at 1.2 cents per mile. Basic members will earn 5 miles for every $1 spent with American Airlines. Achieving elite status will ofer travelers more perks and higher earning rates (up to 11 miles per $1 spent). American Airlines ofers three award redemption options — MileSAAver, AAnytime, and Web Special — with MileSAAver and Web Special awards providing great miles saving opportunities.

Other things to consider: safety ratings

AirlineRatings.com rates American Airlines with a 7/7 for safety. Here’s what AirlineRatings looks at when rating:

• Whether the airline has had a fatal crash in the last 10 years.

• Whether the airline has sufered numerous serious pilot related incidents.

• Whether the airline and its country of origin passed major audits.

• Whether the airline is complying with international COVID-19 standards.

As for health safety, American Airlines has a GBAC STAR™ Accreditation from the Global Biorisk Advisory Council. This means that the airline has a cleaning, disinfection, and infectious disease prevention program in place. If you have concerns about fying amid the pandemic, this may help you feel more comfortable about booking travel.

Overall, you can feel confdent with safety when fying on an American Airlines fight.

Reliability

When it comes to being on time, American Airlines has some improvements to make. The Bureau of Transportation collects important data about commercial airlines. We used some of their data to evaluate the reliability of American Airlines.

In 2020, in regard to all of American Airlines delayed fights, the average departure delay was 57.74 minutes. That same year, American’s on-time arrival percentage was 83.37 percent, with 6.01 percent of scheduled fights canceled.

As for lost baggage and baggage delays, American Airlines has even more work to do. In January 2020, American Airlines was responsible for 46,598 mishandled bags, or 7.81 bags

per 1,000 enplaned. It ranked 16th out of 17 carriers for baggage mishandling. In October 2020, American Airlines had 20,310 mishandled bags, or 6.77 bags per 1,000 enplaned. Again it ranked 16 out of 17 when compared to other major airlines.

Recently, amid the pandemic, American Airlines canceled a large number of fights. While it’s not the only airline to do this, canceled fights can add to travel frustrations. The airline blamed severe weather for these cancellations.

There is a risk of delay or cancelation when you book with any airline. But based on the stats above, you may have more chances of this happening when fying with American Airlines.

Customer satisfaction

The 2021 J.D. Power North America Airline Satisfaction Study examined customer satisfaction across major carriers in North America from August 2020 through March 2021. The study looked at satisfaction measures across three groups: frst and business, premium economy and economy. Participants were surveyed on various topics, including boarding, check-in, costs, fight crew and in-fight services.

With a ranking of 791 points out of 1,000, American Airlines was near the bottom of the list and below the industry average of 820 points. The only airline to score worse was Air Canada. Delta and Southwest topped the list, while United Airlines was just above American.

General cost

American Airlines ofers various ticket types at diferent price points. If your priority is a low-cost ticket, basic economy ticket options ofer some of the lowest fares.

Nerdy tip: Flying basic economy on American Airlines isn’t a bad option. A NerdWallet analysis found that the airline ofers travelers the best basic economy tickets amongst the major domestic airlines.

Travelers seeking a more comfortable fight experience may prefer frst and business class tickets available for a higher price. While not known as a low-cost carrier, the airline does ofer deals and discounts throughout the year. You can take a look at their current deals to fnd inspiration for your next trip.

The cost of award redemptions through the AAdvantage loyalty program varies depending on destination and distance of travel. You can fnd Web Special awards for as few as 5,000 miles and MileSAAver awards for as few as 7,500 miles. With limited availability, both of these options may require fexible travel plans. AAnytime award fares are available for travelers with less fexibility, but they are more costly. These award redemptions cost 20,000 to 90,000 miles each way for main cabin tickets, depending on the destination.

Unique American perks

American Airlines has some notable perks. NerdWallet found that American Airlines ofers the best basic economy ticket when compared to basic economy tickets across major airlines. These tickets provide a more afordable solution for travelers who have limited funds. While basic economy tickets can’t be changed or canceled, they’re a good value, you’re able to fy standby, and you can pick your seat for a fee.

American Airlines also has some great deals when redeeming AAdvantage miles through their MileSAAver and Web Special awards. As noted above, MileSAAver fares can be redeemed for as few as 7,500 AAdvantage miles each way for fights within the contiguous 48 U.S. states and Canada with trip distances under 500 miles. Web Special awards are unpublished, ofered exclusively online and are available for even fewer miles. Both of these options provide an excellent way to save miles while traveling.

Who should avoid American Airlines?

While American Airlines is a popular airline choice, it may not be the right airline for all travelers. Should you avoid it? While that largely depends on your travel preferences, some travelers may want to consider other available options before selecting American Airlines:

Travelers who don’t live in or near a hub: If you don’t live near one of American Airlines’ hubs, you may fnd limited fight availability and may have to deal with more layovers to get to your destination.

Travelers who don’t like bag fees: Depending on ticket type purchased, American Airlines may charge fees for checked bags and oversized bags. Choosing an airline that ofers more baggage allowance may make sense for those who like to travel with more luggage.

Travelers who value reliability: American Airlines doesn’t ofer the best reliability when it comes to on-time fights and baggage handling. If this is a crucial factor for you, you may want to think about fying with a diferent airline.

If you’re considering fying American Airlines ... Is American Airlines a good airline? While it does have areas for improvement, no airline is perfect. American Airlines is considered to be a safe airline and has excellent mileage redemption options. It ofers fights to many destinations worldwide and has a variety of ticket types for travelers of all budgets.

Before booking a ticket, be sure to join the AAdvantage loyalty program for added benefts. Whether you’re buying a ticket or redeeming AAdvantage miles for travel, make sure your expectations are realistic. If you know what to expect based on your chosen ticket type, you can have a comfortable and positive travel experience.

ARTICLE

AAL stock forecast: Is American Airlines taking of?

By Peter Henn | February 24, 2022

What is the AAL stock forecast as American Airlines recovers from the pandemic?

Considering that it is the number one airline in the US, the Covid-19 pandemic and the world’s gradual recovery have had a major impact on American Airlines. In the frst quarter of 2020, as the pandemic took hold, the company racked up a loss of $2.2bn over that period, a dip into the red that had not been seen in seven years. The business was losing $70m a day as travel restrictions and social distancing on fights took their toll on the company.

Thus, 2020 was very much a year to forget for American Airlines and the aviation industry as a whole. Things have started to get better lately, US government bailouts helped paint a perhaps rosier view of things than might otherwise be the case. However, what is the AAL stock forecast for the rest of 2022? Will it take to the skies, will it crash land, or will it circle around in a holding pattern?

American Airlines quarterly update: Taking of

Before we get into the future, though, let’s take a look at some very recent history. Its latest set of quarterly results on 20 January provided some good news for the company. American Airlines managed to cut its losses to a net $2bn for the full year 2021. It scored revenues of $9.4bn compared with $3.1bn in the same time period in 2019. Money from passenger fights more than doubled, going from $3.2bn in 2020’s fourth quarter to $8.4bn in 2021. Both money coming in from cargo and other streams were up 71% and 22%, respectively, with cargo coming in at $341m and other sources of revenue scoring $704m for the business.

AAL boasted transporting 165 million passengers, more than any other carrier in the US, and counted $15.8bn of liquidity at the end of the fourth quarter. The highest year-end balance in company history.

It should be noted that last year was one of the worst years ever for the aviation industry as a whole, as pandemic-related travel restrictions grounded fights and left staf on various forms of furlough. More to the point, perhaps, American Airlines bagged itself more $4.2bn in federal payroll support. However, with the government support, the diluted loss per share was $1.44, compared with $3.09 loss per share in the same period a year earlier.

One of the more encouraging signs of recovery came in the statistic for international passenger miles. This came in at 10.4 billion, triple year-on-year from 3.4 billion, showing that more people were travelling longer distances. Domestic leisure and short-haul international are approaching 100% recovery, while domestic revenue is near 70% of 2019 levels in the fourth quarter.

American Airlines quarterly update: Is the sky the limit?

One other thing to note is what the company thinks it can do in the next quarter. In a statement, American CEO Doug Parker passed the torch to his successor, Robert Isom, to fnish the recovery from the pandemic.

What is your sentiment on AAL?

“Over the past year, we have experienced periods of high travel demand countered by periods of decreased demand due to new COVID-19 variants,” Parker said. “This volatility has created the most challenging planning environment in the history of commercial aviation. Yet the American team has delivered, growing back faster and further than any other U.S. airline to meet this unpredictable demand.”

The markets react

In all, the markets were not very impressed by how American Airlines had performed over the quarter. When the markets closed on 20 January AAL stock price was $16.76. It fell slowly to $15.64 just over a week later on 28 January. Back on 2 June 2021, it closed at a 52-week high of $25.82.

AAL price forecast

When it comes to making an AAL stock forecast, the overall view was fairly spread out with slight optimism winning out. CNN Money’s American Airlines stock forecast by 18 analysts settled on a 12-month AAL stock prediction of $19, which would see it up about 12% from its recent levels.

The most optimistic of the stock predictions was $28. On the other hand, there is always the possibility of disaster striking the shares, with the most pessimistic prediction coming in at $8, down by about 52%.

In terms of what to do with American Airlines stock, the overall view from the experts was a cautious one, bordering on the negative. When CNN asked 24 analysts for their recommendations for AAL stock, the consensus was hold. In total, 15 of the experts said to hold. Slightly worrying for the stock is that four analysts suggested selling, while one thought it would underperform against expectations.

There was some room for positivity, though, with three experts recommending buying into American Airlines and another one saying that it would outperform expectations.

ARTICLE

Why Boeing and Airline Stocks Are Falling Today

By Lou Whiteman | May 18, 2022

Travel demand has held up well so far, but with fresh fears about the impact of infation the stocks are under pressure.

Boeing is ill-positioned to deal with a slowdown, coming of both technical issues with some key planes and the impact of the pandemic.

There is reason to be long-term bullish on airlines and their key supplier, but that bull thesis will likely take a while to play out.

How long can the airlines outrun infation?

What happened

On Tuesday, airline stocks got a lift after United Airlines Holdings (UAL -0.04%) said that so far, at least, demand is holding up well in the face of rising infation. On Wednesday, the focus shifted to fears over how long that can last. Shares of United, American Airlines Holdings (AAL 0.03%), and Spirit Airlines (SAVE 2.96%) all fell about 5%, and planemaker Boeing (BA 6.22%) also traded down by a similar amount.

As I said yesterday, these are volatile times to be investing in airline stocks. The sector took it on the chin during the early days of the pandemic, with airlines scrambling to remain liquid as demand fell to near-zero. Demand has recovered nicely so far in 2022, but now new concerns including higher fuel and labor costs and the impact of soaring infation are weighing heavily on investors.

United remains upbeat, on Tuesday raising its outlook for second-quarter passenger revenue. As expected, costs are going up, too, but United held its margin guidance steady, implying that strong demand is creating enough pricing power to ofset the higher expenses.

The question is how long that can last. On Wednesday, the markets sold of following weaker-than-expected earnings from Target. The results suggest that infation is beginning to have an impact on consumer behavior. It seems likely that if penny-pinching is in order consumers are more likely to rethink a big purchase like a vacation, which could mean there is a limit to how much airfare prices can go up in the months to come.

A potential slowdown comes at a difcult time for Boeing as well. The company stumbled well before the pandemic: Its 737 MAX was grounded for 18 months after a pair of fatal accidents. Post-crash scrutiny has led to regulators taking a fresh look at other Boeing planes as well, leading to delays in its forthcoming 777 widebody update and a suspension of deliveries of its 787 Dreamliner.

Boeing’s debt ballooned during the pandemic, when airlines stopped buying new planes to preserve precious cash, and the company’s balance sheet recovery has been hindered by a lack of deliveries due to quality concerns. The prospect of consumers tightening their belts would make it less likely that airlines will rush to refresh their feets in the quarters to come, perhaps further delaying a Boeing recovery.

Now what

The long-term bull case for Boeing and the airlines is similar, and it has a lot of credibility. Global demand for air travel is expected to grow by more than 2% annually over the next two decades. That’s going to create a lot of demand for airlines, and the need for a lot of new airplanes.

The problem is in the timing. While those long-term catalysts remain intact, there is a lot of uncertainty on the near-term horizon. Airlines have booked fares through much of the summer, but there is no telling what might happen to demand come Labor Day if infation remains elevated. Investors also need to factor in what has so far been a sluggish business fare and international recovery, which could be further dented should a new wave of COVID-19 cases arrive in the fall, as some predict.

Add in the damage done by infation on the cost side, particularly when it comes to labor and fuel costs, and both the airlines and their most important vendor might be stuck in a circling pattern for a lot longer than investors anticipate.

For those interested in buying in and waiting out the headwinds, I’m partial to buying aircraft fnancing company AerCap Holdings over any individual airline or aircraft manufacturer. AerCap has seen a sell-of because it has planes operating in Russia that might be unrecoverable due to the war, but the company is well capitalized and remains a way to gain exposure to aviation growth trends without betting on an individual vendor.

For those who want to ride the airlines instead, buckle up and be prepared for signifcant turbulence up ahead.

CASE STUDY COMPANY RESOURCES

JetBlue (JBLU)

NOTES & QUESTIONS

If you would like to use a current balance sheet for your project:

• Go to Yahoo! Finance (You don’t have to sign-in or sign-up). • Search “JetBlue”, then click the “fnancials” tab, and then “balance sheet.”

• You can “expand all” to see the information that goes into each section and you can change it from annual to quarterly.

ARTICLE

JetBlue Releases Annual Social Impact and Environmental Social Governance Reports Showcasing Its Progress in Helping to Create a Kinder and Cleaner World

October 12, 2021

The Social Impact Report outlines the JetBlue For Good pillars – community, youth and education and the environment – and highlights how the airline supported its communities and crewmembers through the most challenging time in the aviation industry’s history, and took meaningful actions to accelerate its journey to become more representative and inclusive in every aspect of its business. The Environmental Social Governance (ESG) Report outlines JetBlue’s work toward sustainable operations and travel solutions, and its sharpened focus on identifying, tracking, and responding to risks and opportunities shaping the future of its business.

“In 2020 our mission to inspire humanity was tested like never before,” said Joanna Geraghty, president and chief operating ofcer, JetBlue. “Humanity depends on compassion, and empathy, and our crewmembers took this to heart. They showed up and went above and beyond to keep our customers safe when they needed to travel. Despite a global pandemic, we continued to support our communities, crewmembers and the planet. With a focus on the future, we evolved our diversity, equity and inclusion strategy to support a more diverse pipeline. Meanwhile, we recognize we have more work to do in reaching our ambitious sustainability targets, so we set clear short-term milestones to hold us accountable along the way.”

JetBlue responded to pandemic-specifc needs in 2020 by donating both resources and fights to nonprofts to get much needed supplies and medical professionals to the areas in critical need. JetBlue took on these eforts in addition to its signature corporate responsibility programs focused on youth, education, the environment and increasing diversity within aviation and science, technology, engineering and math (STEM) felds.

Over the past 18 months, societal demands and stakeholder feedback spurred JetBlue to reexamine its relationships with its crewmembers, customers and the communities it serves, and in turn, strengthen shareholder value. Aligned with its long-term strategy, JetBlue reimagined its diversity, equity and inclusion (DEI) strategy to contribute to the airline’s long-term growth by starting with a concentrating on three areas – people, sourcing and brand.

JetBlue For Good 2020 highlights

Youth and Education

One opportunity that emerged as a result COVID-19 pandemic was a renewed global spotlight on the importance of science. Despite a shift from traditional classrooms to virtual learning, JetBlue continued to introduce traditionally underrepresented students to the various possibilities within aviation. JetBlue and the organizations it partners with worked together to not only spark students’ interest in STEM, but also break down barriers that block or prevent underserved youth from advancing in these areas. As the eforts of many organizations to advance diversity, and racial and gender equity were severely impacted by the pandemic, the JetBlue Foundation issued an emergency granting cycle to help organizations like Aviation High School, Columbia Memorial Space Center, and the Latino Pilots Association continue their important work.

Much like school classrooms need desks, chairs, textbooks and teachers, virtual classrooms also require resources to be efective. To help support the shift to virtual learning, JetBlue and its crew members volunteered more than 500 hours in virtual classrooms and activities, donated 160 refurbished laptops to ensure students passionate about STEM could continue their education from home, and engaged with 25 STEM-focused organizations via online programming, grants and in-kind support.

Community

JetBlue pivoted to support its community partners in creative ways and donated much needed supplies, such as blankets, pillows and amenity kits to organizations like the City of New York and its Department of Social Services to help clothe and care for the homeless and other vulnerable communities. JetBlue donated headphones to education partners, like Big Brothers Big Sisters of Broward County, to assist in virtual learning, and provided toiletry kits to local shelters. Dishware and cutlery were sent to local soup kitchens through a partnership with the United Way of Broward County, as well as local soup kitchens in Boston.

Through its TrueBlue® loyalty program, JetBlue and its customers donated three million TrueBlue points to charities including Autism Speaks, Make-A-Wish®, Together We Rise and World Central Kitchen to assist with critical travel needs and fundraising eforts.

Environment

JetBlue continued to take major steps in reducing its impact on the environment. Last summer, JetBlue became the frst airline to achieve carbon neutrality for all U.S. domestic fights by ofsetting carbon dioxide (CO2) emissions from jet fuel and fying with sustainable aviation fuel (SAF). Since 2008, JetBlue has ofset more than three million metric tons of CO2 emissions, the equivalent of taking 652,000 cars of the road for a year, and plans to continue ofsetting all domestic fying indefnitely.

JetBlue is currently fying on SAF from two diferent producers for fights at Los Angeles International Airport (LAX) and San Francisco International Airport (SFO). This began in 2020 with Neste, the world’s largest producer of renewable diesel and SAF refned from waste and residues, to fuel JetBlue’s fights from SFO. Neste’s SAF is produced from 100 percent renewable and sustainably sourced waste and residue materials.

Geraghty continued, “We’re facing climate change head-on to work toward a healthier planet, ensure our success and strengthen shareholder value. Despite a challenging year, we have sharpened our focus on ESG. Our experiences in 2020 only reinforced the importance of mitigating risks that threaten the health of our business.”

Ambitious ESG Targets and Governance

JetBlue accelerated its commitment to take critical and measurable steps toward reducing its contribution to climate change. JetBlue announced several environmental targets to help reach its goal to achieve net zero carbon emissions by 2040, including eforts to:

• Decrease aircraft emissions 25 percent per available seat mile (ASM) by 2030 from 2015 levels, excluding ofsets.

• Convert 10 percent total jet fuel to blended sustainable aviation fuel by 2030.

• Convert 40 percent of three main ground service equipment vehicle types to electric by 2025 and 50 percent by 2030.

• Eliminate single-use plastics within service ware where possible. Where not possible, ensure plastic is recyclable.

• Maintain at least an 80 percent recycling rate for audited domestic fights.

JetBlue recognizes that ESG issues touch all parts of its business. To ensure the airline is appropriately identifying and managing potential ESG-related risks and opportunities, such as those associated with climate change, JetBlue has incorporated ESG considerations into core business functions starting at the top with its Board of Directors. JetBlue’s Board formed

an ESG Subcommittee to the Governance and Nominating Committee to ensure the Board is aware of JetBlue’s ESG strategy and has a comprehensive understanding of ESG matters. JetBlue also linked, for the frst time, key ESG targets to its senior leaders’ long term incentive plan (LTIP) compensation.

JetBlue For Good is JetBlue’s platform for social impact and corporate responsibility –

Combining JetBlue’s corporate eforts with its customers’ and crewmembers’ passions, the common theme is Good – JetBlue For Good. Giving back is part of JetBlue’s DNA and is core to its mission of inspiring humanity. Centered on volunteerism and service, JetBlue For Good focuses on the areas that are most important to the airline’s customers and crewmembers community, youth/education and the environment.

JetBlue believes in communicating transparently about climate change. The airline is committed to taking steps to address the emission of greenhouse gases (GHGs) from its fights and JetBlue empowers and inspires its customers and crewmembers to ofset GHG emissions when they fy. The airline is constantly looking for ways to enhance the sustainability of its travel through more fuel efcient technologies, increasing its usage of sustainable aviation fuel, and supporting the next generation of alternative energy aircraft.

ARTICLE

JetBlue Goes Hostile With Reduced $3.3 Billion Spirit Bid

Mary Schlangenstein and Charlotte Ryan | May 16, 2022

JetBlue Airways Corp. made a hostile $3.3 billion cash bid for Spirit Airlines Inc., appealing directly to shareholders in an efort to prevail over a rival ofer for the discount carrier by Frontier Group Holdings Inc.

The JetBlue proposal is worth $30 a share, $3 less than its initial approach, which was spurned by Spirit’s board two weeks ago. The New York-based company said Monday it will pay the higher price should a “consensual transaction” be agreed. JetBlue’s latest ofer is a 77% premium to the value of Spirit’s closing price on Friday.

Spirit shares climbed 8.4% to $18.40 at 9:35 a.m. in New York. JetBlue shares fell 2.5% and Frontier rose 4%.

“This signals that the original JetBlue ofer was a serious one, as opposed to one just trying to scuttle the Spirit-Frontier deal,” said Savanthi Syth, a Raymond James Financial Inc. analyst.

The move marks the latest twist in the takeover tussle for Miramar, Florida-based Spirit.

JetBlue is banking on the acquisition as its best shot at near-term growth, even though the deal would mean combining its own full-service product with a model based around ofering rock bottom prices and charging for every extra.

Spirit rejected JetBlue’s earlier unsolicited $3.6 billion proposal over concerns that antitrust issues would stop it from being consummated, and stuck with its agreement to be acquired by Denver-based Frontier for $2.9 billion. Spirit and Frontier didn’t immediately respond to requests for comment.

Spirit management’s proposed deal with Frontier, which includes stock, is “high risk and low value,” JetBlue said in a statement, urging investors to reject it at a meeting scheduled for June 10.

Letter to Shareholders

JetBlue set up a website -- www.JetBlueOfersMore.com -- and issued a letter to Spirit shareholders as part of its attempt to derail the Frontier deal, with Chief Executive Ofcer Robin Hayes arguing that his own proposal ofers more value, more certainty and more benefts for all stakeholders.

Hayes also sought to justify the bid in a letter to his own employees, saying that “by voting against the Frontier merger, Spirit shareholders can push the Spirit board back to the table to give us the information we need and negotiate a merger agreement with us, perhaps at our original price.”

He said the combination would in turn create “a true national low-fare competitor” to big four US carriers American Airlines Group Inc., Delta Air Lines Inc., United Airlines Holdings Inc. and leading discounter Southwest Airlines Co.

A Frontier-Spirit Airlines combination, though not so big, would create the largest US deep discounter just as domestic leisure travel bounces back from the Covid-19 pandemic. Under the Frontier deal, investors in Spirit would receive 1.9126 Frontier shares and $2.13 in cash for each Spirit share. Frontier shareholders would own 51.5% of the combined company.

Spirit has said JetBlue’s bid could by compromised by a federal lawsuit against its alliance with American Airlines in the northeast US, and that its board didn’t consider fnancial details after determining it had little chance of gaining regulatory approval. Claims that the antitrust lawsuit against the Northeast Alliance with American could be a factor in the takeover bid “has no basis in fact or in law,” JetBlue said.

JetBlue took aim at Spirit’s links to Bill Franke, the self-proclaimed father of ultradiscounting whose Indigo Partners owns the majority of Frontier’s shares. Franke, who serves as Frontier’s chairman, led Spirit’s conversion to an ultradiscounter about 15 years ago, and in 2013 used proceeds from selling Indigo’s 17% stake in Spirit to purchase Frontier out of

bankruptcy and convert that carrier to the ultra-low-cost model.

Spirit’s board “is prioritizing its own self-interest and personal relationships with Frontier over its shareholders’ interests,” JetBlue claimed.

A Spirit deal would give JetBlue, hounded by Wall Street analysts for much of its 23-year history over cost creep, access to an organization and management team highly focused on keeping operating expenses in check. JetBlue lost out in its only other takeover attempt when it was outbid by Alaska Air Group Inc. for Virgin America in 2016.

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What Is The Ownership Structure Like For JetBlue Airways Corporation?

May 23, 2022

Every investor in JetBlue Airways Corporation (NASDAQ:JBLU) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

With a market capitalization of US$3.3b, JetBlue Airways is rather large. We’d expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let’s take a closer look to see what the diferent types of shareholders can tell us about JetBlue Airways.

What Does The Institutional Ownership Tell Us About JetBlue Airways?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that JetBlue Airways does have institutional investors; and they hold a good portion of the company’s stock. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of JetBlue Airways, (below). Of course, keep in mind that there are other factors to consider, too.

collectively wield signifcant power. We note that hedge funds don’t have a meaningful investment in JetBlue Airways. FMR LLC is currently the company’s largest shareholder with 12% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.1% and 8.0% of the stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 11 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of JetBlue Airways

While the precise defnition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difcult for other shareholders to hold the board accountable for decisions.

Our data suggests that insiders own under 1% of JetBlue Airways Corporation in their own names. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own US$11m worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership The general public, who are usually individual investors, hold a 20% stake in JetBlue Airways. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

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Why JetBlue Shares Are Up Today

By Lou Whiteman | May 19, 2022

On Friday, Spirit Airlines reiterated its support for its deal with Frontier and urged investors to reject JetBlue’s rival ofer.

Spirit is the most obvious near-term path to generate growth for JetBlue, but the proposal comes with a lot of risk. JetBlue is urging Spirit shareholders to force the board’s hand by rejecting the Frontier proposal.

What happened

Spirit Airlines (SAVE 3.15%) has once again rebuked a takeover overture from JetBlue Airways (JBLU 2.62%), despite JetBlue’s willingness to pay a higher price than Spirit merger partner Frontier Group Holdings (ULCC 1.13%). JetBlue investors appear pleased with the development, sending shares of the airline up 5% on Thursday afternoon.

So what

Spirit and Frontier announced plans to merge back in February, but in April JetBlue stepped in with its own ofer to acquire Spirit. The airline industry is facing a shortage of pilots, which limits growth opportunities, and both Frontier and JetBlue are hoping to use mergers and acquisitions to bulk up.

Though JetBlue ofered a premium price, Spirit has remained faithful to Frontier due to the target’s perception that a Frontier/Spirit deal would face an easier time winning regulatory approval than a tie up between Spirit and JetBlue. JetBlue in response has gone directly to Spirit shareholders, urging them to vote against the planned Frontier deal and instead tender their shares to JetBlue.

On Thursday, Spirit reiterated its allegiance to Frontier. The airline said its board determined the JetBlue ofer is not in the interest of shareholders because of the “substantial regulatory hurdles” JetBlue would face. JetBlue responded with a statement criticizing the Spirit board, which it says, “continues to ignore the best interests of its shareholders by distorting the facts to distract from their fawed process and protect their inferior deal with Frontier.”

Now what

It’s hard to say for sure what outcome JetBlue shareholders should be hoping for. In one sense, the Spirit deal is perhaps the clearest avenue for growth on the horizon for JetBlue, and there are no obvious alternative acquisition targets to pursue should Spirit combine with Frontier.

But JetBlue is ofering a hefty price -- a premium of more than 50% to Spirit’s current share price. And because JetBlue is ofering all cash, there is a real risk it is spreading itself thin in

an uncertain economic climate where fuel and labor costs are soaring and consumer infation threatens to eat into demand.

On Thursday, at least, investors appear not to be too bothered by the prospects of Spirit ending up with Frontier. For investors that might mean anemic growth for the next few years. But it is defnitely also the safer path forward from here.

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American Airlines vs. JetBlue: Which Stock Is a Better Buy?

By Aditya Raghunath | Apr 6, 2022

AAL – Airline stocks such as American Airlines (AAL) and JetBlue (JBLU) have trailed the broader markets in the last year. The two companies are expected to report losses in 2022 due to lower capacity, higher unit costs, and macro-economic uncertainty.

After a tumultuous 24 months due to the coronavirus, the world is slowly limping back to normalcy. The pandemic decimated various companies, sectors, and economies, as borders were shut and lockdowns were imposed all over the world. The airline industry was among the worst-performing ones in the last two years, as travel came to a standstill.

Running an airline is a capital-intensive business which means companies have to raise debt to fund expansion plans. However, it is extremely difcult to make interest payments when revenue decelerates to a trickle. So, to keep operations running, airline companies may either restructure debt or raise equity capital, which burdens its fnancials or dilutes shareholder wealth.

Today I’ll analyze and compare American Airlines (AAL - Get Rating) and JetBlue Airways (JBLU - Get Rating) to determine which airline stock is currently a better investment.

American Airlines

In Q4 of 2021, American Airlines reported revenue of $9.43 billion, compared to $4.03 billion in the year-ago period. However, it was still down 17% compared to the same period in 2019. While capacity declined by 13% in Q4, its unit revenue was down 4.2% due to cost pressures such as high fuel prices and rising interest expenses.

American Airlines reported a pre-tax loss of $1.18 billion while its adjusted loss per share stood at $1.42 in Q4 of 2021. The company is expected to lose money in Q1 of 2022 as well, due to seasonal weakness coupled with the impact of Omicron.

American Airlines has forecast its top-line to decline between 20% and 22% compared to Q1 of 2019 which might result in a pre-tax loss of over $2 billion.

JetBlue

In October 2021, JetBlue warned investors its revenue might decelerate in Q4 on a sequential basis due to delayed business travel recovery. These concerns were exacerbated when the Omicron variant was detected which led to the cancellation of travel plans and crew-related shortages.

In Q4 of 2021, JetBlue saw its sales fall by almost 10% compared to Q4 of 2019, which was in line with its initial guidance. This allowed JetBlue to end the quarter with an adjusted EBITDA of $31 million which was again near the high end of management guidance. Comparatively, its adjusted net loss stood at $0.36 per share.

In Q1 of 2022, JetBlue estimates revenue to fall between 11% and 16% compared to the same period in 2019. Additionally, unit cost infation might increase by double digitals relative to 2019.

The verdict

Shares of American Airlines might seem attractive, especially given its forecast to report adjusted earnings between $4 and $6 per share with $50 billion in sales by 2024. However, the company has repeatedly missed consensus estimates in recent years. American Airlines also ended 2021 with a debt balance of $46 billion which includes lease liabilities. It would take the company multiple years of consistent profts to de-leverage its balance sheet.

On the other hand, while still unproftable, JetBlue is on track to narrow its losses from $2.51 per share in 2021 to $0.18 per share in 2022. The competition in the airline sector is bound to gain momentum in the upcoming years. Budget airline companies such as JetBlue plowed in capital to expand their feets amid COVID-19 to gain market share on the rebound.

While American Airlines is trading near consensus price target estimates, JetBlue Airways is trading at a 20% discount to 12-month average price targets right now. Further, its lower debt levels and narrower losses, make JetBlue a better bet.