JetBlue Introduces Lower Fares into Transatlantic Air Travel Market

JetBlue (JBLU) is ready to disrupt the transatlantic air travel market with lower fares. In a few months, the airline will enter the international travel arena with flights between New York and England.

Starting in August, JetBlue will offer non-stop flights between New York’s John F. Kennedy International Airport (JFK) and London’s Heathrow Airport. In September, the airline will initiate a non-stop service between JFK and London Gatwick Airport. Additionally, flight services from Boston to London will begin in the summer of 2022.

The airline will take delivery of three A321LRs in 2021 to support the new JFK routes. Sales of seats at low fares for U.S. travelers have already begun, with seats for the Heathrow and Gatwick routes starting at $599 per roundtrip. (See JetBlue stock analysis on TipRanks).

“Our low fares will disrupt the pricing of the major carriers and massive joint ventures; JetBlue’s presence in this market is going to be immediately noticeable to customers,” said JetBlue CEO Robin Hayes.

Morgan Stanley analyst Ravi Shanker has reiterated a Buy rating on the stock, impressed by the company’s first-quarter update.

Shanker stated, “As we noted in our post 1Q update and our April industry update, JBLU remains one of our favorite names in the space on exposure to the reopening trade, potential to capitalize on cycle upside, the cost cutting story but most importantly, idiosyncratic opportunities we see on the revenue side from four catalysts (international launch, travel products, AAL alliance, co-brand card revamp).”

The analyst has a $30 price target on the stock implying 51.75% upside potential to current levels.

Consensus among analysts on Wall Street is a Moderate Buy based on 7 Buy, 3 Hold, and 1 Sell ratings. The average analyst price target of $22.91 implies 15.88% upside potential to current levels.

JBLU scores a 7 out of 10 on TipRanks’ Smart Score rating system, implying it is likely to align with the overall market.

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