JetBlue Airways (NASDAQ: JBLU) shares plummeted over 10% on Tuesday following the appointment of Joanna Geraghty as the new CEO. Geraghty, with nearly two decades of experience at JetBlue and currently serving as the chief operating officer, steps into the role succeeding Robin Hayes.
Hayes, who commenced his journey with JetBlue in 2008 and navigated the airline through the hurdles of the COVID pandemic, expressed in a letter to employees that the “extraordinary challenges and pressure of this job have taken their toll.” This statement accompanies his retirement from the airline.
Moreover, the U.S. Justice Department has taken legal action to block JetBlue, the sixth-largest U.S. airline, from acquiring Spirit Airlines (NYSE: SAVE), the seventh-largest. The argument centers around concerns that the merger could lead to increased airfares.
Meanwhile, JetBlue Airways (NASDAQ: JBLU) is optimistic about its financial performance. The airline anticipates fourth-quarter results to beat the previously forecasted figures, citing robust holiday travel demand as a contributing factor.
Bank of America has downgraded its stock rating on JetBlue to “underperform” and also lowered its price target. Analyst Andrew Didora cited several challenges, including a competitive environment for domestic flights, issues with Pratt & Whitney GTF jet engines, and concerns about the fate of the Spirit Airlines acquisition.
Maria Reed is a financial journalist with a passion for covering US equities. She joined the ABBO News team in June 2023. Maria holds an M.S. degree in International Economics and Finance from Otto-von-Guericke University in Magdeburg and is a CFA Level 2 candidate.
