JetBlue cuts forecast on shift to international travel, end of American Airlines partnership

JetBlue Airways slashed its 2023 outlook and warned of a potential loss in the current quarter as travelers opt for destinations abroad and the carrier grapples with the end of its partnership with American Airlines in the Northeast. JetBlue forecast adjusted earnings per share for the full year ranging from 5 cents to 40 cents, down from an earlier estimate for per-share earnings of as much as $1. The New York-based carrier said it could post an adjusted loss of as much as 20 cents for the third quarter with revenue down 4% to 8% from the same period last year. The airline’s shares tumbled more than 8% on Tuesday after reporting Q2 results. Here’s how the company performed in the period, compared with Wall Street expectations, according to Refinitiv consensus estimates: Adjusted earnings per share: 45 cents vs. 44 cents expected; Revenue: $2.61b vs. $2.61b expected. JetBlue reported net income of $138m for Q2, or 41 cents a share, compared with a net loss of $188m, or 58 cents a share, a year earlier. Revenue rose 6.7% to $2.61b, roughly in line with analyst estimates. Airline executives this earnings season have noted a shift in demand toward long-haul international travel, which was hurt during the Covid pandemic. That change along with increased capacity is driving down domestic airfare, as travelers opt for new destinations abroad, they said on recent earnings calls. JetBlue’s COO, Joanna Geraghty, said the shift is “pressuring demand for domestic travel during the peak summer travel period. “While we remain on track to deliver a profitable year and record revenue performance, we are taking action, including redeploying capacity to mitigate these current challenges and improve margins,” she said in an earnings release.<br/>