JetBlue (JBLU) earnings Q2 2023

JetBlue Airways slashed its 2023 outlook and warned of a potential loss in the current quarter as travelers opt for destinations abroad and the carrier grapples with the end of its partnership with American Airlines in the Northeast.

JetBlue forecast adjusted earnings per share for the full year ranging from 5 cents to 40 cents, down from an earlier estimate for per-share earnings of as much as $1.

The New York-based carrier said it could post an adjusted loss of as much as 20 cents in the third quarter with revenue down 4% to 8% from the same period last year.

The airline’s shares were down close to 5% in premarket trading after reporting second-quarter results.

Here’s how the company performed in the period, compared with Wall Street expectations, according to Refinitiv consensus estimates:

• Adjusted earnings per share: 45 cents vs. 44 cents expected
• Revenue: $2.61 billion vs. $2.61 billion expected

JetBlue reported net income of $138 million for the second quarter, or 41 cents a share, up from a net loss of $188 million, or 58 cents a share, a year earlier. Revenue rose 6.7% to $2.61 billion, roughly in line with analyst estimates.

Airline executives this earnings season have noted a shift in demand toward long-haul international travel, which was hurt during the pandemic.

JetBlue’s COO Joanna Geraghty said that change is “pressuring demand for domestic travel during the peak summer travel period.

“While we remain on track to deliver a profitable year and record revenue performance, we are taking action, including redeploying capacity to mitigate these current challenges and improve margins,” she said in an earnings release.

Other challenges include the end of JetBlue’s alliance with American Airlines in New York-area airports and Boston after a judge ruled it anticompetitive and ordered them to scrap it. The partnership allowed the carriers to share passengers and revenue and coordinate routes.

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