Why Shares of JetBlue Gained 15% in October
Shares of JetBlue Airways (NASDAQ: JBLU) climbed 15.2% in October, according to data provided by S&P Global Market Intelligence, fueled by the company's better-than-expected third-quarter results and aggressive 2020 guidance. The airline has been fighting pricing weakness throughout the year, but management expressed confidence it is making progress in its efforts to overhaul the company and make it more profitable.
JetBlue has had an up-and-down year, with the company facing headwinds including high costs, inconsistent leisure demand, and weather issues in key markets. The company has a plan to address these challenges, including cutting annual costs by $300 million using software to better manage spare-part inventory and optimize labor hours, but the transformation is a slow process and investors have remained skeptical.
Image source: JetBlue Airways.
Source Fool.com
