JetBlue lifts Q3 revenue forecast after solid summer performance

JetBlue Airways (NASDAQ:JBLU ) shares are up around 5% premarket Thursday after the airline raised its Q3 2024 revenue outlook on Thursday, citing a strong summer travel season and improved operational performance.

The airline reported that on-time performance increased by about ten percentage points year-over-year, thanks to its intensified focus on reliable service as part of its JetForward strategy.

Revenue gains were driven by better-than-expected bookings, particularly in Latin America, and the company’s $300 million revenue initiatives.

Additionally, JetBlue saw a boost from re-accommodating passengers affected by other airlines’ July cancellations due to technology outages.

As a result, the company now expects revenue for Q3 to range between a 2.5% decline and a 1.0% increase year-over-year, compared to its previous forecast of a 5.5% to 1.5% decline.

On the cost front, JetBlue benefited from moderating fuel prices and cost-control measures.

Non-fuel unit costs improved by one percentage point compared to earlier expectations, though weather disruptions in August partially offset these gains. The company has lowered its forecast for fuel prices to $2.70-$2.80 per gallon, down from $2.82-$2.97.

JetBlue also said that in August, it completed several significant financing transactions, issuing $2 billion in senior secured notes and a $765 million term loan. As a result, the company revised its full-year interest expense forecast to $370-$380 million, up from the $320-$330 million initially expected.

Overall, JetBlue’s operational improvements and financial strategies have positioned the airline for a more optimistic third quarter than previously anticipated.

Source: Investing.com