JetBlue Slashes Q3 Capacity Outlook, Raises Cost Guidance on Weather and Fuel
JBLU is trading near its 52-week low of $3.87 (12% above the low).
Summary
JetBlue cut its Q3 capacity growth outlook to 1.5%-3.5% from 3%-6%, citing severe weather and ATC constraints that drove cancellations up nearly double. Cost per available seat mile ex-fuel is now expected to rise 6%-8%, up from 2.5%-4.5%, and fuel is guided to $3.96/gal versus $3.49 prior. Offsetting this, RASM guidance was raised to 17%-20% growth from 12.5%-16.5% on strong demand and pricing. This follows the 8-K filed this morning that raised revenue outlook but also increased fuel and operating cost guidance. The net effect is a squeeze on margins despite better revenue, and shares are down 1.1% premarket.
At the time of this announcement, JBLU was trading at $4.33 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $1.7B. The 52-week trading range was $3.87 to $6.62. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.