JetBlue (JBLU) Tweaks Q3 View on Lower Bookings, ATC Issues
JetBlue Airways Corporation (JBLU) has provided updated guidance for the third quarter of 2023.
The company announced that adverse weather and air traffic control issues in the Northeast have unfavorably impacted its crew and associated disruption costs during the third quarter. Additionally, leisure travel bookings during the September quarter have been lower than expected.
For third-quarter 2023, JetBlue now anticipates revenues to be near the low end of its prior guidance (earlier estimate was a decline of 4-8%).
Non-fuel unit cost or cost per available seat mile (CASM, excluding fuel and special items) for the September quarter is now expected to be near the high end of the prior view (earlier estimate was a 2.5-5.5% increase) from third-quarter 2022 actuals.
Available seat miles for the third quarter of 2023 are expected to be up almost 7% year over year (prior view: increase in the 5.5-8.5% band).
Additionally, JetBlue has raised its fuel guidance. For third-quarter 2023, JBLU now anticipates fuel price per gallon to be around $2.95 (prior view: $2.75-$2.90 band).
Zacks Rank and Stocks to Consider
Currently, JetBlue carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Transportation sector are GATX Corporation (GATX), Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB) and SkyWest, Inc. (SKYW). Each of these companies presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GATX has an expected earnings growth rate of 14.33% for the current year. GATX delivered a trailing four-quarter earnings surprise of 17.30%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 6% year to date.
Wabtec has an expected earnings growth rate of 16.87% for the current year. WAB delivered a trailing four-quarter earnings surprise of 3.42%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 4.9% over the past 90 days. Shares of WAB have gained 5.9% year to date.
SkyWest's fleet-modernization efforts are commendable.A fall in operating expenses is a tailwind for SkyWest. In second-quarter 2023, the metric dipped 2.4% to $693.8 million due to a decline in operating costs. Low operating expenses boost bottom-line results. Shares of SKYW have surged 163.6% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 31.51%, on average.
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JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
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