Key points:
- JetBlue reported earnings on Tuesday
- The company posted a quarterly profit
- JBLU shares are down over 4% premarket
JetBlue (NASDAQ: JBLU) shares are down 4.38% premarket after the company reported third-quarter earnings before the bell on Tuesday, which saw the company swing to a quarterly profit.
The airline said it is on track for record revenue and reported revenue per available seat mile increased by 23.4% compared to guidance of an increase of 22% to 24%. Revenue exceeded the high end of the group's initial outlook as demand for leisure and visiting friends persisted.
The group posted a quarterly profit of $57 million on revenue of $2.56 billion.
Meanwhile, pre-tax income came in at $105 million, below the pre-tax income of $254 million in 2019. JetBlue reported adjusted earnings per share of $0.21, lower than the $0.24 forecast by analysts.
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“For the third quarter, we reached an important milestone in our recovery as we generated our first quarterly adjusted profit since the start of the pandemic,” said Robin Hayes, JetBlue's Chief Executive Officer.
Hayes stated: “Looking ahead, we expect our profitability to carry through to another solid quarter of mid-single-digit pre-tax margins in the fourth quarter, and we'll look to expand on that further in 2023 as we continue to restore our earnings power.”
Looking ahead, JetBlue's Chief Financial Officer Ursula Hurley said the company exceeded its original revenue guidance and maintained controllable costs in line with its initial outlook despite the impact of hurricanes. In addition, due to the “continued fragile aviation ecosystem,” the carrier is taking a cautious approach to operational investments. The group forecasts CASM ex-Fuel to increase 8.5% to 10.5% year over three.
Due to the unfavourable effects of increasing fuel prices and other macroeconomic and market factors, JetBlue shares have fallen almost 50% in 2022.
