5 Takeover Rumors Targeted By Short Sellers

2. JetBlue Airways Corporation (NASDAQ:JBLU)

Short Percentage of Float: 18.40%

JetBlue Airways Corporation (NASDAQ:JBLU) is one of the takeover rumors targeted by short sellers.

The freshest jolt to the story came on April 17, when founder David Neeleman warned that JetBlue could face bankruptcy if it did not materially improve its position. That sounds like pure bad news on its face, but in a consolidation-heavy industry, it also sharpens the question of whether a weakened JetBlue could eventually become somebody else’s opportunity.

That is the angle industry coverage has been leaning into. FlightGlobal wrote in late March that there was no deal for JetBlue “to seize on” at the time, but argued the carrier had become a more conceivable takeover candidate after the collapse of its Spirit Airlines ambitions, its diminished position, and a potentially friendlier merger climate. The same analysis pointed to United Airlines and American Airlines as the most obvious strategic fits, while acknowledging the antitrust baggage those pairings would carry.

The operating backdrop explains why the chatter exists at all. JetBlue reported fourth-quarter revenue of $2.3 billion, down 3.5% year over year, and a net loss of $69 million, while saying its JetForward plan and aircraft-delivery deferrals are meant to strengthen the balance sheet and improve earnings over time.

JetBlue Airways Corporation (NASDAQ:JBLU) is a low-cost airline headquartered in Long Island City, New York.