The JetBlue Airways Corporation (NASDAQ: JBLU) stock price fell 8.10% after reporting its financial results for the third quarter of 2023. The company generated revenues worth $2.35 billion during the quarter, narrowly missing analysts estimates of $2.38 billion.
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The low-cost airline also recorded an adjusted net loss for the third quarter of $129 million or $(0.39) per share, missing analysts' estimates of a $0.25 loss per share. The airline’s full-year outlook was also not encouraging, which triggered a significant decline in its share price during premarket trading.
JetBlue’s full-year forecast now includes a net loss of between 65 and 45 cents per share, much higher than analysts' consensus expectations of a narrower loss of 25 cents per share.
The company made significant progress in realising cost savings under its structural cost program. This program remains on track to deliver approximately $70 million in cost savings for the year and is expected to generate $150 million to $200 million in run-rate savings by 2024.
As part of the fleet modernisation program, 18 Embraer E190s have been removed from the fleet, with a transition to the more cost-effective Airbus A220s. This transition is anticipated to result in $55 million in cost savings by the end of the year and $75 million in cost savings through 2024.
The company initiated daily service to Amsterdam Schiphol Airport (AMS) from New York's John F. Kennedy International Airport (JFK) and Boston Logan International Airport (BOS).
JetBlue received recognition from J.D. Power for the JetBlue Plus Card, ranked the highest among co-brand airline credit cards. This acknowledgement highlights the value provided to customers.
The company maintained a robust financial position, with $1.5 billion in unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities at the end of the quarter.
Robin Hayes, JetBlue’s Chief Executive Officer, said: “While we faced challenges in the quarter, including significant weather-related impacts and rising fuel prices, our Crewmembers rose to the occasion, focusing on what we can control to mitigate these headwinds and provide our customers with great service. As we look ahead, we are making improvements to drive profitable growth and ensure JetBlue is positioned for success in 2024 and beyond.”
JetBlue Airways (JBLU) stock price.
The JetBlue Airways stock price fell 9.52% to trade at $3.80 from Monday’s closing price of $4.20.
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