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- JetBlue said travel demand remained healthy and reduced its full-year loss forecast.
- The airline explained that since the end of October, bookings have exceeded expectations .
- JetBlue added that almost all of its flight bookings were completed in November and none were canceled during the Thanksgiving peak period.
JetBlue Airways (JBLU) shares climbed by more than 11% on Thursday in intraday trading after the airline lowered its full-year loss forecast due to soaring demand for tickets.
The carrier reduced its forecast for its 2023 loss to $0.50 from $0.40, compared to a loss of $0.45 to $0.65. The company also revised upwards its revenue outlook, which is now expected to increase to 4-5% compared to 3-5% previously.
JetBlue wrote in a regulatory filing that travel demand “remains healthy.” He noted that since late October, close-quarter bookings have exceeded expectations, both for peak holiday periods and non-holiday travel periods.
He added that his performance Operational performance was strong, with 99.9% of its flights completed in November and 100% for the Thanksgiving peak period.
JetBlue is currently in a legal battle with the Justice Department that could impact JetBlue's $3.8 billion acquisition of rival low-cost carrier Spirit Airlines (SAVE). Earlier this week, a judge overseeing the case reportedly suggested the deal could be allowed to proceed if JetBlue divests more assets.
JetBlue shares rose up 11.6% to $5.28 per share around 12:45 p.m. ET. However, even with Thursday's gains, shares of JetBlue Airways are down 18.8% year to date.
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Source: investopedia.com
