JBLU - JetBlue tempers Q4 guide amid 'adverse impact' of holiday calendar

JetBlue Airways Corporation ( NASDAQ: JBLU ) updated guidance on Tuesday to factor in impacts from weather and the holiday travel schedule.

“Underlying demand trends continue to be strong with healthy load factors and yields above 2019 levels for both trough and peak travel periods. JetBlue also continues to generate strong ancillary revenue performance, with exceptional co-brand performance which continues to reach record levels,” an SEC filing stated. “However, JetBlue experienced a negative impact from Hurricane Nicole in November, and the expected very strong close-in demand for December reflected in its prior outlook has materialized below expectations.”

The filing added that the “adverse impact of the fourth quarter holiday calendar” is due to hit the airline’s performance into year-end. As such, the carrier said it now expects revenue per available seat mile for Q4 to be at the low-end of its prior guidance range which forecast a 15% to 19% year over year increase.

Guidance for cost per available seat mile was maintained, with the airline anticipating an 8.5% to 10.5% increase in costs from 2019. Average all-in price per gallon of fuel is expected to tick in at $3.65 for Q4.

Elsewhere, potential acquisition Spirit Airlines ( SAVE ) updated its guidance. The low-cost airline now expects Q4 capacity to rise 24.1% as compared to 24.5% in previous forecasts. Meanwhile, adjusted operating margin is now estimated to be between 2.5% and 3.5% as compared to the previous guidance of 1% to 3%.

Spirit maintained revenue per available seat mile on Tuesday, while touting a comparatively lower fuel cost at $3.50 for the fourth quarter.

Read more on JetBlue’s carbon emission reduction push .

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