JetBlue Sees Wider Than Expected Loss In Q4, Cuts FY23 Outlook; Stock Dips In Premarket - Update

(RTTNews) - JetBlue Airways Corp. (JBLU), while reporting a loss in its third quarter with weak revenues, on Tuesday issued fourth-quarter outlook and trimmed its forecast for fiscal 2023 to now expect an adjusted loss.

In pre-market activity on Nasdaq, JetBlue shares were losing around 8.33 percent to trade at $3.85.

For the fourth quarter, the airline projects adjusted loss per share of $0.35 to $0.55. On average, 12 analysts polled by Thomson Reuters expect loss of $0.15 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue is expected to decline 6.5 percent to 10.5 percent from last year, while available seat miles or ASMs are expected to grow between 0.5 percent and 3.5 percent.

For fiscal 2023, the company now projects adjusted loss per share between $0.45 and $0.65, while previous outlook was adjusted earnings per share between $0.05 and $0.40.

The Street is looking for loss of $0.24 per share for the year.

Revenue is now expected to grow 3 percent to 5 percent, while previous view was for a growth of 6 percent to 9 percent. ASMs are now expected to grow between 5 percent and 7 percent for the year, while earlier it expected a growth between 5.5 percent and 8.5 percent.

Joanna Geraghty, JetBlue's President and Chief Operating Officer, said, "We continue to see healthy travel demand during peak periods and the fourth quarter holidays. However, industry capacity is outpacing domestic demand during off peak travel periods. For the fourth quarter, our growth will be driven primarily by international as we proactively work to manage our capacity and reduce schedules in off-peak periods."

In its third quarter, loss was $153 million, compared to earnings of $57 million in the same period last year. Loss per share was $0.46, compared to profit of $0.18 a year ago.

Adjusted loss was $0.39 per share for the period. Analysts projected a loss of $0.25 per share for the quarter.

Revenue declined to $2.35 billion from prior year's $2.56 billion.

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