JBLU - JetBlue stock tumbles as near-term headwinds hurt outlook

2023-10-31 07:10:29 ET

JetBlue ( NASDAQ: JBLU ) shares plunged as much as 11% premarket on Tuesday after the airline company updated its full year 2023 outlook to reflect near-term headwinds.

The low-cost airline now expects a full year revenue growth of 3%-5%, down from 6%-9% previously, and adjusted losses of ($0.65) - ($0.45), compared to $0.05 - $0.40 income previously and -$0.24 consensus .

"While we have been able to offset some of the costs associated with the challenging operational backdrop, the sheer magnitude of the air traffic control and weather-related delays has been staggering. We remain focused on controlling what we can control, including our structural cost program and fleet modernization plans," said CFO Ursula Hurley.

The company noted that industry capacity is outpacing domestic demand during off peak travel periods, with Q4 growth likely to be driven primarily by international.

For Q4, revenue is estimated to fall (10.5%) - (6.5%) Y/Y, while adjusted losses are seen between ($0.55) and ($0.35) vs. -$0.15 consensus.

JetBlue ( JBLU ) failed to meet analysts expectations with its Q3 report , owing to significant weather-related impacts and rising fuel prices. Operating revenue of $2.4B was down 8.2% year-over-year. The airline also swung to a net loss of $153M from $57M income in the prior year quarter.

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