JetBlue Airways Issues Q3 Outlook; Cuts FY23 Earnings View; Stock Down In Premarket

JetBlue Airways Corp. (JBLU), while reporting a profit for its second quarter with higher revenues, on Tuesday issued third-quarter outlook and updated forecast for fiscal 2023.

Joanna Geraghty, JetBlue’s President Chief Operating Officer, said, “Looking ahead, we are updating our full-year earnings outlook to reflect near-term headwinds related to the termination of the NEA, a challenging operating environment in the northeast and a greater than expected shift of pent-up COVID demand to long-haul international markets which is pressuring demand for domestic travel during the peak summer travel period.”

For the third quarter, the company projects between adjusted loss per share of $0.20 and a breakeven.

On average, 12 analysts polled by Thomson Reuters expect earnings of $0.40 per share for the quarter. Analysts’ estimates typically exclude special items.

Revenue is expected to decline 4 percent to 8 percent from last year, while available seat miles or ASMs are expected to grow between 5.5 percent and 8.5 percent.

For fiscal 2023, the company now projects adjusted earnings per share between $0.05 and $0.40, while previous outlook was between $0.70 and $1.00. The Street is looking for earnings of $0.78 per share for the year.

Revenue is now expcted to grow 6 percent to 9 percent. ASMs are expected to grow between 5.5 percent and 8.5 percent for the year.

The company said leisure demand trends are healthy and that it continues to see robust demand during peak periods, led by strength in Latin America, visiting-friends-and-relatives and transatlantic travel.

In pre-market activity on Nasdaq, JetBlue shares were losing around 5.2 percent to trade at $7.37.

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