JetBlue Airways Corp.’s stock jumped more than 13% on Thursday, after the airline raised guidance for the fourth quarter and full year, saying travel demand remains “healthy.”
“Since late October, close-in bookings have outperformed expectations for both holiday peak and non-holiday travel periods,” the carrier said in a regulatory filing. “JetBlue experienced strong operational performance during the month of November and achieved a 99.9% completion factor for the month and 100% completion factor for the Thanksgiving peak period.”
JetBlue shares
JBLU,
were headed towards their highest close since Sept. 7, when they closed at $5.39, and were on pace for their largest one-day percentage increases since Nov. 9, 2020, when they rose 21.7%.
JetBlue’s “updated [fourth-quarter] guidance does not look as weak as previously expected,” Citi analyst Stephen Trent said in a note Thursday.
The airline is now expecting its fourth-quarter adjusted loss per share to range from 35 cents to 25 cents, narrower than prior guidance of 55 cents to 35 cents. It expects revenue to fall 7% to 4%, compared with prior guidance for a drop of 10.5% to 6.5%.
“Although an expected net loss hardly seems like a celebratory event, a milder-than-expected revenue decline and slightly lower fuel [expense] now narrow the carrier’s expected loss,” Trent said.
Available seat miles are expected to rise 2.0% to 3.0%, up from prior guidance of 0.5% to 3.5%.
Cost per available seat mile, excluding fuel, is still expected to rise 8.5% to 10.5%. The company is expecting fuel price per gallon net of hedges to range from $3.05 to $3.15, down from prior guidance of $3.05 to $3.20.
For the full year, the airline expects its adjusted loss per share to range from 50 cents to 40 cents, vs. prior guidance of 65 cents to 45 cents. Revenue is expected to rise 4.0% to 5.0%, compared with prior guidance of 3.0% to 5.0%.
ASM are expected to rise 5.5% to 6.5%, versus prior guidance of 5.0% to 7.0%. CASM excluding fuel is still expected to rise 4.5% to 5.5%. The fuel price per gallon is now expected to range from $3.00 to $3.05, down from prior guidance of $3.02 to $3.07.
On Wednesday, Delta Air Lines Inc.
DAL,
backed its full-year guidance ahead of the presentation at the Morgan Stanley Global Consumer & Retail Conference.
The stock has fallen 27% in the year to date, while the U.S. Global JETS ETF
JETS
has gained 6% and the S&P 500
SPX,
has gained 19%.
Claudia Assis in San Francisco contributed to this report.
Read the full article here
