Shares of JetBlue Airways (JBLU) dropped in trading on Tuesday after the company’s FY24 outlook disappointed investors. JetBlue now expects FY24 revenue to decline between 5% and 4%, a more significant dip than analysts’ estimated 3.6% decrease. Additionally, fourth-quarter revenues are projected to drop 7% to 3% year-over-year.
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Adding to JBLU’s woes, its operating expenses per available seat mile (excluding fuel) are forecasted to rise in the range of 13% to 15% and between 7% and 8% in the fourth quarter, and in FY24, respectively.
JBLU Reports Better-than-Expected Q3 Results
Despite future challenges, JBLU reported better-than-expected third-quarter results. The company’s adjusted loss narrowed to $0.16 per share, compared to a loss of $0.39 per share. This was better than consensus estimates of a loss of $0.21 per share.
Furthermore, the company’s total operating revenues increased by 0.5% year-over-year to $2.4 billion. This was in line with analysts’ expectations of $2.4 billion.
JetBlue’s Management Comments on Q3 Results
The company’s management remained “pleased” with its positive year-over-year revenue growth in the third quarter. Additionally, JBLU’s President Marty St. George commented that the airline’s strategic capacity adjustments have helped balance supply with demand during slower travel times, while peak and last-minute travel demand remained strong.
Is JBLU a Good Stock to Buy?
Analysts remain sidelined about JBLU stock, with a Hold consensus rating based on one Buy, five Holds, and one Sell. Over the past year, JBLU has surged by more than 70%, and the average JBLU price target of $6.25 implies a downside potential of 14.6% from current levels. These analyst ratings are likely to change following JBLU’s results today.
