News

JetBlue Airways Corporation (JBLU) has provided updated guidance for the second quarter of 2024.

JBLU now anticipates its second-quarter revenues to decline between 6.5% and 9.5% year over year, which marks an improvement from the previous guidance of a 6.5% to 10.5% decline.

Capacity or Available Seat Miles (ASMs) is now anticipated to decline in the 2-4% range. This marks an improvement over the prior forecast to decline in the 2-5% band.

Further, the company has lowered its CASM, excluding fuel and special items, guidance. JBLU now anticipates CASM, excluding fuel and special items to increase 5-7%, down from the prior expectation of 5.5-7.5% increase.

JetBlue now anticipates second-quarter 2024 average fuel cost per gallon in the range of $2.85-$2.95 (prior view: between $2.98 and $3.13). Lower fuel costs should boost the company’s bottom line, as fuel expenses represent a key input cost for any transportation player.

Capital expenditures are still expected to be roughly $550 million.

JBLU's solid operational performance is evident from its 99% completion factor. This, coupled with healthy overall demand trends and solid cost execution, has enabled JBLU’s management to issue an encouraging outlook for the second quarter of 2024.

JetBlue is not the only airline company updating its second-quarter 2024 guidance.

American AirlinesAAL management trimmed its earnings per share (EPS) outlook for second-quarter 2024. CEO Robert Isom stated that the softness pertaining to bookings was due to changes in the airline's sales strategy. Vasu Raja, AAL’s chief commercial officer, who was spearheading the new sales and distribution strategy, will step down this month.

American Airlines now expects adjusted EPS for the second quarter in the $1-$1.15 band (earlier guidance was in the $1.15-$1.45 range). Second-quarter total revenue per available seat miles is now expected to decline in the 5%-6% band from the year-ago levels (a dip of 1-3% was expected previously). System capacity (measured in available seat miles) is still estimated to increase in the 7-9% band from second-quarter 2023 actuals.

United Airlines UAL also featured in the news, courtesy of management’s decision to stick to the second-quarter EPS guidance provided with first-quarter 2024 results. United Airlines still expects second-quarter 2024 EPS in the $3.75-$4.25 band.

Each stock mentioned above presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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