By Shivansh Tiwary
(Reuters) -JetBlue Airways on Thursday raised its third-quarter revenue forecast as the company benefited from efforts to streamline operations, strong summer travel and demand from travelers seeking alternatives amid a global cyber disruption.
The company’s bookings got a boost because JetBlue was not one of the main airlines affected by the July flight delays and cancellations following the outage caused by a software update from cybersecurity company CrowdStrike (NASDAQ:).
JetBlue now expects September quarter revenue to range between a 2.5% decline and 1% year-over-year growth. Previously, sales were forecast to decline somewhere between 1.5% and 5.5%.
The company’s shares rose 6.4% in early trading in a subdued broader market.
“While some of the positive adjustment may have been temporary as the airline picked up some CrowdStrike-affected passengers in July, the airline’s overall update looked encouraging,” Citi analyst Stephen Trent wrote in a note.
JetBlue cited stronger bookings in Latin America, one of its key markets, and gains from previously announced cost cuts and cancellations of less profitable routes for the forecast increase.
The airline has taken several measures to improve its financial performance since the termination of its proposed $3.8 billion merger with the ultra-low-cost carrier. Spirit Airlines (NYSE:) in March.
It has postponed deliveries of 44 new aircraft from Airbus, reducing planned capital expenditures between 2025 and 2029 by about $3 billion.
JetBlue expects current quarter unit costs, excluding fuel, to rise between 5% and 7%, compared to a previous forecast of 6% to 8%.
The airline also expects fuel costs to fall as jet fuel prices fell this quarter.
