JetBlue Airways Corp. saw a decline of 3.5% in its shares, which fell to $5.91. This drop came after UBS initiated coverage on the stock with a "sell" rating and set a price target of $5. According to UBS, this target represents an 18.3% decrease from the stock's previous closing price.

UBS expressed concerns about JetBlue, citing capacity constraints and high inflation as significant challenges that could impede the growth of revenue per available seat mile (RASM). The brokerage firm also mentioned that JetBlue's leverage is expected to remain high, contributing to their negative outlook.

Prior to this announcement, JetBlue shares had experienced a year-to-date increase of approximately 7%.