JetBlue Airways (NASDAQ:JBLU) posted a loss for the first three months of the year but joined other carriers in forecasting a profit for the second quarter thanks to strong travel demand.
JetBlue estimated per-share earnings of 35 cents to 45 cents for the current quarter, ahead of analyst estimates with revenue up 4.5% to 8.5% on the year and capacity up 4.5% to 7.5% from 2022. The second quarter coincides with the start of the peak travel season.
Adjusted loss per share turned out to be 34 cents vs. 38 cents expected, on revenue of $2.33 billion vs. $2.32 billion expected.
In the first three months of the year, JetBlue lost $192 million, or 58 cents a share, an improvement from a net loss of $255 million, or 79 cents per share, in the same quarter of 2022. Revenues jumped 34% in the first quarter to $2.33 billion, slightly ahead of estimates. Average fares rose more than 9% in the quarter from 2022 to $214.07.
However, expenses rose more than 22% to $2.57 billion, with the fuel bill alone up 34% from a year earlier. Adjusting for one-time items, JetBlue had a loss of $111 million, or 34 cents per share, better than the loss of 38 cents a share analysts expected.
The New York-based airline struck a deal to buy budget carrier Spirit Airlines in July for $3.8 billion in cash, but the Justice Department sued to block the acquisition last month.
JBLU began Tuesday gained 8.5 cents, or 1.3%, to $6.91.