JetBlue Airways raised its third-quarter RASM outlook to 17.0%-20.0% year over year, while forecasting CASM ex-Fuel growth of 6.0%-8.0%. The stronger Revenue outlook is expected to help offset higher fuel and operational costs, with early fourth-quarter booking trends remaining encouraging for investors.

Key Highlights

  • JetBlue Airways expects third-quarter capacity growth of 1.5%-3.5% year over year.
  • The airline now forecasts a third-quarter fuel price of $3.96 per gallon, up from $3.49 previously.
  • JetBlue Airways expects third-quarter RASM growth of 17.0%-20.0% year over year, compared with its previous 12.5%-16.5% outlook.

JetBlue Airways Corp (NASDAQ: JBLU) now expects third-quarter RASM to increase 17.0%-20.0% year over year, above its previous 12.5%-16.5% outlook. The improved revenue outlook is helping offset incremental fuel and operational cost pressures.

Updated Guidance Raises Revenue Forecast Third-quarter

available seat miles are now projected to rise 1.5%-3.5% year over year, compared with the earlier 3.0%-6.0% range. CASM ex-Fuel, a non-GAAP measure excluding fuel, other non-airline operating expenses and special items, is expected to increase 6.0%-8.0% year over year, versus 2.5%-4.5% previously. JetBlue set its fuel-price forecast at $3.96 per gallon, compared with $3.49 in the prior outlook. Capital expenditures are now expected to total approximately $275 million, compared with approximately $300 million previously, excluding one Airbus A321neo XLR that JetBlue expects to sell.

Demand Holds Despite Northeast Disruptions Travel

demand remained strong during the third quarter, with booking activity continuing across peak and off-peak periods into September. JetBlue observed no meaningful signs of elasticity, while early fourth-quarter bookings also remained encouraging. Weather events and air traffic control constraints, particularly in the Northeast, resulted in elevated disruption during July and August.