TD Cowen on Friday reiterated its Hold recommendation on JetBlue Airways and kept its price objective at $5.00. The airline's shares were trading at about $5.05 at the time of the note - a level described as slightly below a calculated fair value estimate. The research team said ongoing financial pressures make a neutral stance appropriate for now.
In its note, the firm trimmed its fiscal 2026 forecasts slightly. The downward revisions were tied to concerns about the outlook for jet fuel prices in the New York Harbor market, which the analyst said could meaningfully influence operating costs. Those adjustments accompany data showing the airline is consuming cash at a rapid clip, with negative free cash flow of $1.35 billion over the past twelve months.
Despite these headwinds, TD Cowen flagged a set of factors it expects to help support revenue per available seat mile - or RASM - in the coming quarters. The analyst cited recovering capacity growth, the planned ramp-up of the Blue Sky partnership with United Airlines, expansion in the base of premium credit-card holders, and JetBlue's scheduled rollout of domestic first-class seating in the second half of 2026.
The note also observed that JetBlue could be positioned for a potential short squeeze if an extreme outcome like Spirit Airlines liquidation were to occur, pointing to commercial opportunities at Fort Lauderdale-Hollywood International Airport (FLL) as a potential outlet for capacity or market share shifts.
Still, the firm emphasized that leverage remains an important overhang on the stock and weighed on the decision to maintain a Hold rating and the $5 target. Supporting that view, available financial metrics show a debt-to-equity ratio of 4.15 and an overall financial health assessment classified as "WEAK." Those indicators underline the balance-sheet pressure the carrier faces as it works through cash burn and capital structure constraints.
On the operating-results front, JetBlue's fourth-quarter 2025 results were mixed. The airline reported adjusted earnings per share of -0.49, missing the consensus estimate of -0.46. Revenue for the quarter came in at $2.24 billion, narrowly topping the expected $2.22 billion. The combination of a revenue beat and an earnings shortfall has left performance characterized as uneven, with capital and cost dynamics drawing particular attention.
Overall, the analyst note frames JetBlue's near-term outlook as a tug-of-war between structural revenue opportunities and persistent financial strain - notably high leverage and negative free cash flow. That dynamic underpins the maintained Hold stance and $5 price target until further evidence of improved cash generation or deleveraging emerges.