Two JetBlue board members step down as part of 2024 Icahn deal

Raymond James analyst Savanthi Syth cut earnings estimates for airlines due to surging jet-fuel prices, with US Gulf Coast prices up 39% quarter-to-date. She warned of a potential bankruptcy risk for JetBlue, while upgrading Allegiant (ALGT) to Strong Buy. Estimates for American Airlines (AAL) and Delta (DAL) were also revised downward.

Midday movers included Intuitive Machines, up about 9% after saying it received an authorization to proceed for a $600 million multisatellite communications program. EyePoint Pharmaceuticals fell about 70% after its Phase 3 wet AMD treatment failed its primary goal. JetBlue dropped 6% after a Seaport Research downgrade. Onto Innovation rose on Goldman coverage. Workday fell after a Deutsche Bank downgrade. Memory chip stocks rose after comments on Apple buying Chinese chips.

Seaport Research Partners analyst Daniel McKenzie downgraded JetBlue Airways (JBLU) from Buy to Neutral, citing heightened balance-sheet risk as the Strait of Hormuz remains closed and US-Iran tensions keep jet fuel volatile. He estimated revenue upside from Spirit’s May shutdown at about $500 million and JetForward value at $300 million, but warned the war may not end soon. Shares fell 5.75% to $5.33.

JetBlue Airways (JBLU) shares fell 4.3% after Seaport Global Securities downgraded the stock from Buy to Neutral, citing a worse geopolitical backdrop and the Strait of Hormuz not reopening, which could pressure fuel-cost assumptions. Seaport noted JetBlue’s $9.4B debt and current ratio of 0.7. Other analysts remain bearish.

JetBlue Airways (JBLU) shares fell about 4.5% after Seaport Global Securities downgraded the stock to Neutral from Buy, citing higher geopolitical risk after the Iran ceasefire ended. The analyst kept earnings and free-cash-flow outlooks but lowered the valuation multiple due to increased balance-sheet risk tied to assumptions about the Strait of Hormuz.

House Energy and Commerce ranking member Frank Pallone sent inquiry letters to eight US airlines (American, Delta, United, Alaska, JetBlue, Southwest, Frontier, Hawaiian) asking by Aug. 25 how AI and consumer data affect individualized fares. The probe cites FTC surveillance pricing findings and follows JetBlue class actions alleging data-harvesting and algorithmic price targeting.