MW JetBlue's bonds find buyers despite stock slide

By James Rogers

JetBlue's stock plunged more than 25% after the air carrier reported its fourth-quarter results earlier this week, but its bonds are finding buyers

JetBlue Airways Corp.'s stock fell this week following the air carrier's fourth-quarter results, but the company's bonds have been finding buyers, according to the latest data from data-solutions provider BondCliQ Inc.

Shares of JetBlue $(JBLU)$ ended Tuesday's session down 25.7% to register their biggest decline on record, based on available data going back to April 12, 2002, Dow Jones Market Data show.

Related: JetBlue's stock plunges as revenue outlook disappoints. Capacity is in the spotlight.

However, the following chart from BondCliQ shows that there has been more net buying in JetBlue bonds post-earnings. Of three high-yield JetBlue junk bonds, most of the volume is in the 9.875% bond, which matures in 2031. The 2031 bond has found buyers since the company reported its results Tuesday, as the chart shows.

The following chart shows that, on Wednesday, there was mostly buying of JetBlue bonds throughout the day.

Related: Looking for winning airline stocks this year? BofA says to avoid Southwest and JetBlue.

JetBlue reported upbeat fourth-quarter results earlier this week, although its stock tumbled as investors focused on the air carrier's weaker-than-expected guidance revenue per available seat mile, a key metric.

JetBlue's stock has rallied somewhat since its slide on Tuesday, and it ended Wednesday's session up 1.5%. The stock is up 4.4% Thursday.

Related: Bond investors are trimming 'Magnificent Seven' holdings - with one exception

JetBlue shares are up 14.2% in the last 12 months, compared with the U.S. Global Jets exchange-traded fund's JETS gain of 39.9% and the S&P 500 index's SPX gain of 24%.

-James Rogers

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January 30, 2025 15:49 ET (20:49 GMT)

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