Stock Markets Analysis & Opinion

JetBlue (JBLU) Cuts Flights Until Mid-January on Omicron Woes

Per a Reuters report, JetBlue Airways (NASDAQ:JBLU) JBLU is expected to cut its schedule by about 1,280 flights through Jan 13, 2022, as an increasing number of its staff contract COVID-19 infections.

U.S. carriers have been canceling hundreds of flights since Christmas Eve due to the Omicron-induced spike in coronavirus cases and inclement weather conditions in parts of the United States. As per reports, airlines have canceled more than 8,000 flights since Dec 24.

More than 1000 flights were canceled within, into, or out of the United States on Thursday. JetBlue canceled more than 170 flights, about 17% of its schedule, on Dec 30. Per the Reuters report, a JBLU spokesperson said, “We expect the number of COVID cases in the northeast – where most of our crew members are based – to continue to surge for the next week or two.” The spokesperson added, “This means there is a high likelihood of additional cancellations until case counts start to come down.”

JetBlue Airways Corporation Price

JetBlue Airways Corporation Price

JetBlue Airways Corporation price | JetBlue Airways Corporation Quote

JetBlue, carrying a Zacks Rank #4 (Sell), said that the flight cuts will help avoid last-minute cancellations. JBLU CEO Robin Hayes told CNBC, “The worst type of cancellation as we all know is that cancellation that happens at the airport.”

On Thursday, Delta Air Lines (NYSE:DAL) DAL, which carries a Zacks Rank #3 (Hold), canceled about 250 flights out of its 4,179 scheduled mainline and Delta Connection flights as Omicron-induced woes and bad weather hurt its operations. It expects to cancel between 200-300 flights daily over the weekend.

Delta said that it is rebooking customers affected by the cancellations on the next available itinerary to their final destination. The airline has issued travel waivers for customers affected by the adverse weather conditions. These are in place in Chicago, IL; Detroit, MI; Salt Lake City, UT; Seattle, WA and the Central & Southern Rocky Mountain region.

Key Picks

Here are some better-ranked stocks within the broader Transportation sector:

ArcBest (NASDAQ:ARCB) Corporation ARCB flaunts a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history. It has outperformed the Zacks Consensus Estimate for earnings in each of the preceding four quarters, the average surprise being 27.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of ArcBest have surged more than 100% in a year.

Schneider National (NYSE:SNDR) SNDR carries a Zacks Rank #2 (Buy). The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21%.

Shares of Schneider National have rallied more than 32% in a year’s time.

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