A support line has formed in the chart of JetBlue Airways Corporation (NASDAQ:JBLU). The stock has tested that level many times over the past year. It appears to be falling back down to that support again. If it falls through, a breakdown is expected. Read more to learn how to profit from this trade.JetBlue Airways Corporation (JBLU) is a low-cost airline that offers high-quality service, including assigned seating and in-flight entertainment. It carries over millions of customers with an average of more than 1,000 daily flights and serves approximately 99 destinations in the United States, the Caribbean, and Latin America.
The company’s passenger revenues soared 22.4% in the first half of 2021 as air travel demand improved due to more people getting vaccinated. But revenues for the third quarter are expected to be lower than before the pandemic with capacity expected to be flat and fuel prices rising.
JBLU had $3.7 billion in cash as of the most recent quarter which compares favorably to only $432 million in short-term debt. However, the company has a negative profit margin of -28%. Total revenue is forecasted to rise 297% year over year in the current quarter leading to a Growth Grade of B in the POWR Ratings system.