Citi downgrades airline stock to 'sell' worries about leisure travel
Source
JetBlue Airways is unlikely to fare well amid a potential slowdown in leisure travel, making now a good time to unload shares of the airline, according to Citi. The bank downgraded its rating on the travel name to sell from neutral. It also lowered its price target on shares to $5.30 from $6.60, implying 14% downside from Thursday's close. "We see more downside risk to leisure [Revenue per Available Seat Mile (RASM)] into the fall on a relative basis," analyst John Godyn said Friday in a note to clients. "Accordingly, we believe the supermajors are best positioned to outperform in this complex backdrop… and downgrade Jet Blue to sell/HR on deteriorating risk/reward." Shares of JetBlue have surged 36% year to date as the flight operator has pursued a new profits-driven corporate strategy and showed signs of expanding its operational capacity. JBLU YTD mountain Shares are up 36% in 2026. However, Godyn is expecting shares to pull back due to macroeconomic conditions such as higher inflation that could dampen demand for leisure travel. Under those conditions, the risk-reward ratio for JetBlue has turned negative. That's particularly true given a rising risk of JetBlue underperforming on RASM and the fading likelihood of its consolidation with other airlines, Godyn said. "We are concerned that JetBlue's leisure-focused footprint will result in relative RASM underperformance," het wrote. He added that JetBlue is trading at roughly 6.2 times price-to-earnings, or close to its peer groups average. That would suggest much of the airline's newly issued "at least $1 earnings-per-share" target is already already priced in, according to Citi. Citi's call does not align with consensus on the Street. Of the 19 analysts covering JetBlue, 12 have a hold rating on the stock, while 6 have a sell or underperform on it, LSEG data shows.