Is JBLU a safe investment?

**JetBlue Airways (JBLU) faces significant challenges that could impact its safety as an investment**, and here's why:

1. **Financial Health Concerns**: JetBlue's debt-to-equity ratio stands at 3.47% as of March 31, 2025. While this might seem manageable, the airline's negative EBIT (earning before interest and taxes) of $164 million and negative free cash flow of $62 million for the same period raise red flags about its financial health. The interest coverage ratio of -1.13 also indicates that the company's interest expenses are not being covered by its earnings, which is a critical warning sign for investors.

|code|Ticker|Name|Date|Debt-to-Equity Ratio|Debt-to-Equity Ratio YoY|market_code|
|---|---|---|---|---|---|---|
|JBLU|JBLU.O|Jetblue Airways|2024 Q2|1.9911012235817576|88.35171010406087|185|
|JBLU|JBLU.O|Jetblue Airways|2024 Q3|3.113086232980333|166.10234733298523|185|
|JBLU|JBLU.O|Jetblue Airways|2024 Q4|3.2332449829609997|128.78156293767717|185|
|JBLU|JBLU.O|Jetblue Airways|2025 Q1|3.465848670756646|82.07461193340481|185|

|code|Ticker|Name|market_code|
|---|---|---|---|
|JBLU|JBLU.O|Jetblue Airways|185|

|code|Ticker|Name|Date|Free Cash Flow|Free Cash Flow YoY|market_code|
|---|---|---|---|---|---|---|
|JBLU|JBLU.O|Jetblue Airways|2024 Q3|-3.817602908E9|-9444.799735263512|185|
|JBLU|JBLU.O|Jetblue Airways|2024 Q4|-3.251177504E9|-204.21949216941542|185|
|JBLU|JBLU.O|Jetblue Airways|2025 Q1|-2.042874592E9|-102.06581447429784|185|

2. **Operational Challenges**: JetBlue has recently faced setbacks in its partnerships, including the Supreme Court's rejection of American Airlines' appeal regarding the Northeast alliance. This alliance was seen as a strategic move to increase market competition, but its termination has left JetBlue and American Airlines to compete without this partnership, potentially at a disadvantage against larger airlines like United and Delta.
3. **Market Conditions and Competition**: In a challenging economic environment with increased labor costs and higher expenses due to tariffs, JetBlue is struggling to maintain profitability. The airline industry's response to these macroeconomic factors is likely to have a disproportionate impact on JetBlue due to its existing competitive pressures.
4. **Investor Considerations**: JetBlue's second-largest investor, Vladimir Galkin, is considering offloading his stake, which could signal a lack of confidence in the company's short-term performance. Additionally, the average analyst one-year price target for JetBlue is $4.46, with a high estimate of $9.00 and a low of $3.00, indicating a range of potential outcomes.

In conclusion, while JetBlue has some positive aspects, such as a strong liquidity position and a recent improvement in revenue management, the aforementioned financial and operational challenges, along with the uncertain market conditions, make JBLU a risky investment at this time. Investors should exercise caution and closely monitor the airline's performance and strategic developments.