Why JetBlue Airways Shares Are Trading Higher Today

Zinger Key Points

JetBlue raised its Q3 revenue outlook to between -2.5% and +1.0%, improving from the prior forecast of -5.5% to -1.5%.
On-time performance improved by ten points year-over-year during the summer, driving better operational results.
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Shares of JetBlue Airways Corporation JBLU are trading higher following the company's revised third-quarter revenue expectations. Here’s a detailed breakdown:

Why Is the Stock Moving?

JetBlue raised its third-quarter 2024 revenue outlook, driven by improved operational performance and stronger bookings. The company now expects third-quarter revenue to fall between -2.5% to +1.0% year-over-year, which is an improvement from the previous forecast of -5.5% to -1.5%. Key contributors to this upgrade include:

Improved on-time performance during the summer travel season, which saw a ten-point increase year-over-year.
Increased bookings, particularly in the Latin American region.
Additional revenue from re-accommodating passengers affected by other airlines’ cancellations due to technology outages in July.

Operational Updates

JetBlue expects grounded aircraft to be in the mid-to-high teens in 2025 due to Pratt & Whitney engine issues.
Capacity growth is expected to be flat year-over-year in 2025, with the focus on: A220 deliveries, which offer 90% more premium seats and 30% lower unit costs compared to the outgoing E190 aircraft and simplifying the fleet to only two types, the A220 and A320 family by 2025, improving efficiency.

JBLU Price Action: JetBlue Airways shares were up by 8.35% at $5.44 according to benzinga Pro.