JBLU stock was up, trading at 6.99 as of 10:21 AM EDT on Monday
The Department of Justice’s trial against American Airlines Group Inc. (AAL) and JetBlue Airways Corporation (NASDAQ:JBLU) over claims that their alliance in the Northeast is harming overall competition will be a prominent topic of discussion in the airline industry this week.
American Airlines Stock Goes Up After The U.S. Permits To Fly To Havana
A significant 2020 deal between the two airlines to sell seats on one another’s flights along specific routes was challenged last year by six states and the District of Columbia, which joined the DOJ in filing the antitrust complaint. Along with sharing airport slots and collaborating on schedules, the agreement mandates that JBLU stock and AAL split income from flights.
The DOJ claimed in the lawsuit that the arrangement amounted to an illegal merger. With JetBlue (NASDAQ:JBLU) agreeing to pay $3.8 billion to acquire Spirit Airlines, the trial’s course has gained further significance (SAVE).
Outlook for JBLU stock
Due to the continued strength of the air travel market, JetBlue Airways’ JBLU management has increased its prediction for the third quarter of 2022. JBLU (NASDAQ:JBLU) now has a Zacks Rank #3 (Hold), and it projects its revenue per available seat mile (RPMs), a measure of air traffic), to rise in the range of 22-24% from third-quarter 2019 actuals (previous guidance had predicted an increase in the 19-23% range). JBLU’s capacity prediction for the September quarter is stronger than the initial forecast due to a strong completion factor (% of scheduled flights that are completed) and increased reliability. JetBlue’s updated forecast calls for available seat miles, a measure of capacity, to range between (0.5%) and (0.5%), down from its previous projection of a flat or up to 3% decline from third-quarter 2019 actuals. More info on Yahoo Finance
Featured Image – Megapixl © Zhukovsky
Author Jowi Kwasu 
