Global Courant 2023-04-25 16:30:48
A JetBlue plane at LaGuardia Airport.
Leslie Josephs/CNBC
JetBlue Airways posted a loss for the first three months of the year, but joined other carriers prediction a gain for the second quarter on the back of strong travel demand.
JetBlue estimated earnings per share of 35 cents to 45 cents for the current quarter, exceeding analyst estimates with sales up 4.5% to 8.5% year over year and capacity up 4.5% to 7.5% from 2022. The second quarter coincides with the start of the high season.
“For the second quarter, we expect strong sales growth to continue as demand remains robust and we see continued momentum from our commercial initiatives,” CEO Robin Hayes said in a statement. release revenue. “We forecast a solid profitable quarter and we remain confident in our earnings outlook for the full year.”
Shares rose nearly 1% in premarket trading on Tuesday.
Here’s how JetBlue performed in the quarter ended March 31 compared to Wall Street expectations based on Refinitiv’s consensus estimates:
Adjusted loss per share: 34 cents versus 38 cents expected. Revenue: $2.33 billion versus $2.32 billion expected.
In the first three months of the year, JetBlue lost $192 million, or 58 cents per share, an improvement from a net loss of $255 million, or 79 cents per share, in the same quarter of 2022. Revenues grew 34% in the first quarter to $2.33 billion, slightly more than expected. Average rates increased more than 9% in the quarter of 2022 to $214.07.
However, spending rose more than 22% to $2.57 billion, with the fuel bill alone rising 34% from a year earlier. Adjusted for one-time items, JetBlue had a loss of $111 million, or 34 cents per share, better than the 38 cents per share loss analysts had expected.
The New York-based airline has struck a deal to buy a budget carrier Spirit airlines in July for $3.8 billion in cash, but the Justice Department sued last month to block the acquisition.
JetBlue executives will receive analyst questions about that deal during a quarterly call scheduled for 10 a.m. ET. They will also likely be asked about JetBlue’s partnership with US airlines in the Northeast, which was also sued by the Justice Department to be overturned. A judge has not yet ruled in that case.
JetBlue’s CEO told CNBC last month that the airline is one of several airlines planning to cut part of its schedule in the New York area this summer due to a shortage of air traffic controllers, part of a plan with the Federal Aviation Administration. Administration to Reduce Congestion.
