(Reuters) -JetBlue Airways on Tuesday posted an adjusted loss for the second quarter that was smaller than Wall Street expectations, helped by cost cutting measures and recovering demand for travel in the U.S.
Shares of the carrier were up nearly 3% in premarket trading.
Over the past month, larger peers Delta and United have signaled that bookings are starting to stabilize, though at lower-than-expected levels, pointing to an uneven recovery.
In April, JetBlue joined several major airlines in pulling its 2025 financial forecast, citing uncertainty tied to the Trump administration’s sweeping tariff policies and federal spending cuts that weighed on consumer travel.
“Demand for air travel improved as the quarter progressed, resulting in significant strength for bookings within 14-days of travel, as well as for peak travel periods,” said Marty St. George, JetBlue’s president, adding that the momentum continued into July.
However, the carrier said it expects third-quarter revenue per available seat mile (RASM), an industry metric commonly known as unit revenue and a proxy for pricing power, to decline between 2% and 6%.
It also reinstated its 2025 unit cost forecast and expects it to rise between 5% and 7%. The New York-based airline said unit revenue during the second quarter – a proxy for pricing power – declined 1.5%, which exceeded previous guidance.
The carrier reported an adjusted loss of 16 cents per share for the quarter ended June 30, compared to analysts’ estimate of a loss of 33 cents apiece.
Operating revenue was $2.18 billion. Analysts, on average, were expecting $2.28 billion, as per data compiled by LSEG.
The carrier said it expects to return to growth in 2026 in part due to an improved impact from ongoing inspections of RTX’s Pratt & Whitney Geared Turbofan engines. The company now expects fewer than 10 grounded aircraft in 2025 down from mid-to-high teens.
(Reporting by Aishwarya Jain in Bengaluru and Doyinsola Oladipo in New York; Editing by Shailesh Kuber)
Comments