{"id":142231,"date":"2023-08-01T12:00:00","date_gmt":"2023-08-01T12:00:00","guid":{"rendered":"https:\/?p=142231"},"modified":"2023-08-01T22:31:02","modified_gmt":"2023-08-01T22:31:02","slug":"jetblue-lowers-profit-forecast-after-termination-of-american-deal","status":"publish","type":"post","link":"https:\/\/aviacionaldia.com\/en\/2023\/08\/jetblue-lowers-profit-forecast-after-termination-of-american-deal.html","title":{"rendered":"JetBlue lowers profit forecast after termination of American deal"},"content":{"rendered":"\n

JetBlue Airways <\/strong>cut its full-year profit forecast Tuesday, citing a hit after ending its deal with American Airlines <\/strong>and signs of slowing demand for domestic leisure travel.<\/p>\n\n\n\n

JetBlue shares fell 8% in premarket trading after the airline said it now expected a full-year adjusted profit of 5 cents to 40 cents per share, versus its previous forecast of $70 to $1 per share, Reuters<\/a> reported.<\/p>\n\n\n\n

Calling the forecast extremely disappointing, TD Cowen analysts stated, “JetBlue is caught in the crosshairs of slowing domestic leisure air travel demand, operating at some of the most constrained U.S. airports and dealing with idiosyncratic distractions (NEA Alliance liquidation and merger litigation).”<\/p>\n\n\n\n

\u2192 JetBlue inaugurates flights between New York and Paris<\/a><\/em><\/strong><\/p>\n\n\n\n

JetBlue – which is in the process of acquiring Spirit Airlines – and American Airlines are ending their Northeast Alliance following a U.S. judge’s May order alleging competition concerns. The alliance allowed the two airlines to coordinate flights and share revenue.<\/p>\n\n\n\n

JetBlue is also grappling with the problem of the Pratt & Whitney engines that power the Airbus A320neo and could be forced to ground its aircraft and cut its flying capacity in the midst of a busy summer season.<\/p>\n\n\n\n

“While we remain on track to achieve a profitable year and record revenues, we are taking steps, including redeploying capacity, to mitigate current challenges and improve margins,” said Joanna Geraghty, JetBlue’s Chief Operating Officer.<\/p>\n\n\n\n

The airline, however, beat profit estimates for the second quarter, thanks to strong travel demand amid a post-pandemic travel boom.<\/p>\n\n\n\n

“Overall leisure demand trends are healthy and we continue to see strong demand during peak periods,” stated Geraghty.<\/p>\n\n\n\n

The company earned a profit of 45 cents per share in the quarter ended June 30, versus analysts’ average estimate of 44 cents per share, according to Refinitiv data.<\/p>\n\n\n\n

Its revenue rose 6.7% to $2.61 billion, in line with expectations.<\/p>\n\n\n\n

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