Shares of JetBlue Airways (NASDAQ:) rose about 5% premarket on Thursday after the airline raised its third-quarter 2024 revenue guidance on Thursday, citing a strong summer travel season and improved operating performance.
The airline reported that on-time performance increased by approximately ten percentage points year-on-year, thanks to an intensified focus on reliable service as part of its JetForward strategy.
The revenue increase was driven by better-than-expected bookings, especially in Latin America, and the company’s $300 million revenue initiatives.
Additionally, JetBlue saw a boost from reaccommodating passengers affected by other airlines’ cancellations in July due to technology glitches.
As a result, the company now expects third-quarter revenue to be between a 2.5% decline and an increase of 1.0% year-over-year, compared to its previous forecast of a 5.5% decline to 1.0% year-over-year .5%.
On the cost front, JetBlue benefited from moderating fuel prices and cost control measures.
Unit costs excluding fuel increased by one percentage point compared to previous expectations, although weather disruptions in August partially offset these gains. The company lowered its forecast for fuel prices from $2.82 to $2.97 to $2.70-$2.80 per gallon.
JetBlue also said it completed several significant financing transactions in August, issuing $2 billion in senior secured notes and a $765 million term loan. As a result, the company has revised its full-year interest expense forecast to $370-$380 million, up from the $320-$330 million initially expected.
Overall, JetBlue’s operational improvements and financial strategies have positioned the airline for a more optimistic third quarter than previously expected.
