Reuters / Fred Prouser
JetBlue said “significant weather-related impacts and rising fuel prices” were responsible for a loss in the third quarter that was worse than analysts estimated.
The company posted an adjusted net loss of $129 million, or $0.39 per share, according to a statement released Tuesday. Analysts expected a loss of $0.25 per share, CNBC reported, citing LSEG data.
Revenue fell 8.2% from a year earlier to $2.35 billion, also below analysts’ estimates of $2.38 billion.
The airline cut its forecast for revenue growth in 2023 to a range of 3% to 5%. Previously, it expected growth of 6% to 9%. The forecast for earnings per share shifted from a profit of up to $0.40 to a loss of as much as $0.65.
JetBlue shares fell 11% at the Nasdaq at 9:33 a.m. ET.
“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,” Chief Financial Officer Ursula Hurley said in the earnings press-release. “We remain focused on controlling what we can control, including our structural cost program and fleet modernization plans.”
JetBlue said demand for the fourth-quarter holiday season remains “healthy,” driven mainly by international travel. But domestic capacity is above demand during off-peak travel periods. The company plans to reduce schedules in those periods.
“As we look ahead, we are making improvements to drive profitable growth and ensure JetBlue is positioned for success in 2024 and beyond,” Chief Executive Officer Robin Hayes said.
JetBlue results contrast with Delta Air Lines’, which said on Oct. 12 that sales in the third quarter rose 13%, more than expected. Profit jumped 35%.
