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JetBlue's revenue decline is expected to be smaller in the third quarter after strong holiday demand

JetBlue Airways announced on Thursday that it expected a smaller drop in its operating revenue for the third quarter than it had anticipated. It cited strong demand from air travelers during the summer holidays and Labor Day.

The airline now expects the operating revenue per seat mile to drop between 1.5% and 4%, as opposed to the 2% to 6 % predicted earlier.

JetBlue said that it was "encouraged" by the current booking trends, even though they are still early in the fourth quarter.

In April, major U.S. airline companies retracted their forecasts for 2025, citing tariffs and federal budget cuts as threats to travel demand.

JetBlue reported a smaller-than-expected quarterly loss in July, helped by recovering travel demand and cost-cutting measures, but it stopped short of reinstating its 2025 earnings outlook, citing limited visibility.

The airline has reduced its forecast for the third quarter fuel costs to $2.45 to $2.55 per gallons, down from a previous range of $2.50 - $2.65.

The forecast was also lowered for the third quarter available seat miles or seating capacity to be between flat to up 1% compared to a previous drop of 1%-2%. Reporting by Aishwarya Jain, Bengaluru. Editing by Leroy Leo.

(source: Reuters)