JetBlue Airways Raises Guidance, Expects Positive Travel Demand

JetBlue Airways Corp.’s stock JBLU (+1.72%) soared by 4.9% early Thursday as the airline revealed an increase in guidance for the fourth quarter and full year. The company stated that travel demand remains "healthy" and reported better-than-expected bookings for the holiday season.

Strong Operational Performance

According to a regulatory filing, JetBlue experienced excellent operational performance during November, achieving a remarkable 99.9% completion rate for the month and an exceptional 100% completion rate during the Thanksgiving peak period. These achievements indicate that the airline is meeting customer expectations and enhancing its overall efficiency.

Revised Projections for Fourth Quarter

JetBlue now expects its fourth-quarter adjusted loss per share to range from 35 cents to 25 cents, which is narrower than its previous guidance of 55 cents to 35 cents. Additionally, revenue is predicted to decline by 4% to 7%, a significant improvement compared to the previously projected drop of 10.5% to 6.5%. Moreover, the available seat miles are expected to increase by 2.0% to 3.0%, exceeding the prior guidance of up 0.5% to 3.5%.

Positive Outlook for Full Year

For the full year, the airline anticipates an adjusted loss per share in the range of 50 cents to 40 cents, showcasing a notable improvement compared to the previous guidance of 65 cents to 45 cents. Furthermore, revenue is expected to rise by 4.0% to 5.0%, aligning with the previous estimate of 3.0% to 5.0%. Additionally, available seat miles are projected to increase by 5.5% to 6.5%, falling within the prior guidance of 5.0% to 7.0%.

Market Performance

JetBlue's stock has experienced a decline of 27% this year, contrasting with the 19% gain of the S&P 500 SPX. Although the industry faced numerous challenges, including the global pandemic, JetBlue's positive outlook, strong operational performance, and revised projections indicate its resilience and potential for recovery.