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JetBlue Airways Corp. Issues Revenue Warning

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JetBlue Airways Corp. recently issued a revenue warning for the third quarter due to unexpected disruptions caused by air-traffic control and severe weather conditions. These issues, particularly convective activity in the Northeast region, have had a negative impact on crew operations, resulting in increased costs and decreased revenue.

Additionally, JetBlue mentioned that leisure bookings for September have been lower than anticipated. Consequently, the company now expects its third-quarter revenue to fall at the lower end of its guidance range. Furthermore, it predicts that its cost per available seat mile (CASM) excluding fuel will be towards the higher end of its guidance.

In their second-quarter earnings report released in August, JetBlue had projected a decline in revenue between 8% and 4% for the third quarter. They also anticipated a 2.5% to 5.5% rise in CASM excluding fuel.

Due to intense competition in the international travel industry and other challenges, JetBlue does not expect to generate a profit in the third quarter. However, the company maintains its prior guidance range of approximately 7% growth in available seat miles.

JetBlue also mentioned that fuel prices have significantly increased, estimating a cost of $2.95 per gallon for the third quarter.

Year-to-date, JetBlue’s stock (JBLU) has experienced a 31% decline, while the US Global JETS exchange-traded fund (JETS) has decreased by 1%. In contrast, the S&P 500 index (SPX) has seen an 11% increase.

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