JetBlue’s (NASDAQ:JBLU) Domestic Occupancy Rate – which is the percentage of seats occupied by revenue-paying passengers in a flight – declined from around 84% in 2019 to about 57% in 2020. Trefis expects the number to recover to about 72% in 2021 and 82% in 2022.
While the number declined sharply in 2020 due to the Covid-19 related lockdowns and travel restrictions, progress with mass vaccination programs is likely to lead to a gradual recovery in air passenger numbers.
We think that the projected recovery isn’t yet priced into JetBlue stock. We value JetBlue at about $20 per share, compared to the current market price of about $15.
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