JetBlue raises Q3 revenue view to down 2.5% to up 1% from down 1.5%-5.5%

Narrows Q3 available seat miles view to down 3%-5% from down 3%-6%. Lowers Q3 CASM ex-fuel view to up 5%-7% from up 6%-8%. Lowers Q3 fuel price per gallon to $2.70-$2.80 from $2.82-$2.97. Sees Q3 interest expense $100M-$110M. Sees Q3 capital expenditures $365M. In a regulatory filing, JetBlue announced an operational and financial update of its expected third quarter 2024 results. The company said, “The Company’s operational performance over the summer travel season improved year-over-year, as evidenced by an improvement to on-time performance by approximately ten points year-over-year. This was enabled by JetBlue’s heightened focus on offering reliable and caring service as a core pillar of its JetForward strategy. JetBlue’s revenue performance quarter-to-date was benefited by several factors, including improving in-month bookings, particularly in the Latin region, and continued progress from its previously announced $300 million worth of revenue initiatives. The Company also recognized revenue uplift from the re-accommodation of customers affected by other airlines’ cancellations due to technology outages in July. JetBlue’s quarter-to-date expenses declined due to moderating fuel prices since the start of the third quarter. Non-fuel unit costs improved by one point versus expectations as benefits from focused efforts on cost control and operational reliability were partially offset by weather-related disruption costs in August. In August 2024, JetBlue issued $2,000 million aggregate principal amount of senior secured notes due 2031 and entered into a $765 million term loan credit and guaranty agreement, maturing in 2029. The Company also issued $460 million aggregate principal amount of its 2.50% Convertible Senior Notes due 2029, and used the net proceeds from the initial offering to repurchase a portion of its existing 0.50% senior convertible notes due 2026. These transactions were previously described in the Company’s Current Reports on Form 8-K (collectively, the “Financing Transactions”). As a result of the Financing Transactions, the Company now expects interest expense to be in the range of $370 million to $380 million for the full year, as compared to a previous management assumption (1) of $320 to $330 million.”