Why JetBlue Stock Keeps Going Up

JetBlue stock, symbol JBLU, has been on an upward trend recently. Shares of the discount airline surged more than 20% last week, following earnings reports that showed declining sales and losses, yet optimism for improved conditions by 2027 and potential free cash flow positivity by 2028. Recent positive news has further propelled JetBlue stock, as crude oil prices dropped significantly.

WTI crude oil prices fell by 7%, while Brent crude prices declined even more, dropping 7.4% to $105 a barrel. The main reason behind this price drop is reports of a potential peace deal in the Middle East, which would potentially end the Iran war and lower the threat level against oil tankers. Iranian President Masoud Pezeshkian stated that Tehran would attempt to resolve the issue through dialogue.

Although the situation is uncertain, investors are factoring in the potential of peace, which has contributed to falling oil prices. As JetBlue purchases a significant amount of oil-based jet fuel for its planes, lower oil prices have positively impacted the stock. As for whether these gains will hold, the variable is largely beyond JetBlue's control.

Nonetheless, JetBlue management continues to show progress in controlling factors they can influence. Despite this, the company's losses are still decreasing, hinting at a positive future. However, The Motley Fool advises that investing in JetBlue stock may not be a sure buy.