JetBlue Airways Raises Third-Quarter Revenue Forecast

By Shivansh Tiwary

(Reuters) – JetBlue Airways raised its third-quarter revenue forecast on Thursday, benefiting from streamlined operations, strong summer travel, and demand from travelers seeking alternatives due to a global cyber outage.

The company’s bookings received a boost as JetBlue was not one of the primary carriers affected by flight delays and cancellations in July, which resulted from a software update by cybersecurity firm CrowdStrike (NASDAQ:CRWD).

JetBlue now expects September-quarter revenue to be in the range of a 2.5% decline to 1% growth year-on-year, up from an earlier forecast of a drop between 1.5% and 5.5%.

The company’s shares increased by 6.4% in early trade in a subdued broader market.

“Although some of the positive adjustment may have been temporary as the carrier picked up some CrowdStrike-impacted passengers in July, the overall update looked encouraging,” said Citi analyst Stephen Trent in a note.

JetBlue cited stronger bookings in Latin America, one of its major markets, alongside gains from previously announced cost cuts and cancellations of less-profitable routes as reasons for the forecast adjustment.

The airline has implemented several measures to enhance its financial performance since the termination of its proposed $3.8 billion merger with ultra-low-cost carrier Spirit Airlines (NYSE:SAVE) in March.

It has deferred deliveries of 44 new jets from Airbus, reducing planned capital expenditures between 2025 and 2029 by approximately $3 billion.

JetBlue anticipates current-quarter unit costs, excluding fuel, to increase between 5% and 7%, compared to a previous forecast of a 6%-8% rise. The airline also expects fuel costs to decrease as jet fuel prices moderated during the quarter.