JetBlue slides after lowering guidance on Dorian impact, demand concerns

Earnings

A JetBlue Airways Corp. Airbus A321 plane taxis outside of Terminal 5 at John F. Kennedy International Airport (JFK) in New York.

Mark Kauzlarich | Bloomberg | Getty Images

Shares of JetBlue were down more than 3% in premarket trading after the airline lowered its revenue forecast, citing weak demand for its flights to Puerto Rico and the impact of Hurricane Dorian.

The company said in a securities filing Wednesday that it expects growth of its revenue per available seat mile, a key measure in the airline industry, to be between -2% and 0% for the third quarter. JetBlue’s previous guidance was for growth between 0.5% and 3.5%.

The airline attributed 1.25 percentage points of this change to softer-than-expected demand to Puerto Rico, and 0.75 percentage points to the impact from Hurricane Dorian.

The company also said it is experiencing weaker demand across its system. It reported just over $2 billion in total revenue for the third quarter last year.

Hurricane Dorian has forced airports to close and hundreds of flights to be canceled as it moves toward the United States. The storm has killed at least seven people.

The airline also warned in July that delayed shipments of new planes from Airbus would hamper growth this year. 

Shares of the New York-based airline, which has a market cap of about $5 billion, are up nearly 7% so far this year.

Articles You May Like

CVS, UnitedHealth, Cigna say FTC should take Lina Khan and two commissioners off drug middlemen case
Social Security Administration announces 2.5% cost-of-living adjustment for 2025, lowest increase since 2021
Credit card spending growth is slowing — ‘consumers have been in a pretty frugal mood,’ expert says
Social Security payroll tax limit increases for 2025. Here’s how that may affect you
Chinese finance minister hints at increasing the deficit at highly anticipated briefing

Leave a Reply

Your email address will not be published. Required fields are marked *