JetBlue Airways said on Tuesday that the low-cost carrier’s earnings were falling slightly this month after lower-than-expected demand.
This was reported by the airline company in New York transfer of securities “The very strong demand expected for December materialized below expectations reflected in its previous forecasts.”
JetBlue added that it was “adversely impacted.” Hurricane Nicolehe landed in Florida in early November.
On top of that, the negative impact of the timing of the holiday calendar was also “greater than previously predicted”.
As a result, the airline is now directly forecasting available seat miles for the fourth quarter to be at the low end of its previous guidance range, up 15% from 2019. is an increase of up to 19%.
Still, demand is strong. JetBlue confirmed in a filing on Tuesday that “underlying demand trends continue to be strong with healthy load factors and earnings above 2019 levels,” and that the airline is still generating “strong ancillary revenue performance.”
JetBlue said it expects to increase its capacity, or number of flights, between 1% and 4% in the fourth quarter compared to the same period in 2019.
Fuel prices are expected to average $3.65 in the fourth quarter of 2022.
In October, the airline said it was on track for record profits in 2022.
At the time, JetBlue Chief Executive Officer Robin Hayes said the New York-based company had posted its first quarterly adjusted profit since its inception. the coronavirus pandemic“Continues to see an appetite for JetBlue’s unique customer value proposition of low fares and exceptional service.”
“Across [third] quarter, strong rest and VFR [visiting friends and relatives] demand trends shifted to a peak in the summer and a trough in the fall. We see a continuation here in the fourth quarter and are confident in the backdrop of year-end holiday peaks in demand. In the fourth quarter, we expect unit revenue to grow between 15% and 19% compared to three years ago,” JetBlue said in its third-quarter press release.
Operating income rose 60 percent to $6.7 billion for the nine months ended Sept. 30. Net loss increased to $386 million from $53 million last year.
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