JetBlue Airways posts wider quarterly loss on surging fuel costs
JBLU•JetBlue reported an adjusted third-quarter loss of 60 cents per share, wider than analysts’ 55-cent estimate, as fuel costs rose 57% year over year to $3.91 per gallon. The airline raised its full-year unit revenue growth forecast to 13.5%-14.5%, from 10%-12.5%.
1. Quarterly results
JetBlue Airways reported an adjusted loss of 60 cents per share for the three months ended September 30, compared with a 40-cent loss a year earlier. Analysts expected a loss of 55 cents per share. The carrier said higher fuel costs outweighed gains from fare increases and additional fees.
2. Revenue outlook and costs
JetBlue raised its full-year unit revenue growth forecast to 13.5%-14.5%, from 10%-12.5%. It paid an average of $3.91 per gallon of fuel in the July-September quarter, up 57% from a year earlier and slightly below its forecast of $3.96. Unit revenue rose 18.4%, and the airline ended the quarter with $2.2 billion of liquidity.
3. Shares and debt concerns
JetBlue shares rose 8% in choppy after-hours trading after closing down nearly 10% following reports that creditors were working with restructuring advisers amid mounting debt concerns.
