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JetBlue Drives Away the Blues as Losses Narrow in Q1, Reaffirms Outlook
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JetBlue Drives Away the Blues as Losses Narrow in Q1, Reaffirms Outlook

Shares of low-cost airline JetBlue Airways Corp. (NASDAQ: JBLU)  gained in morning trading on Tuesday after the airliner’s losses narrowed in Q1 to $0.34 per share versus a loss of $0.80 in the same period last year while analysts were expecting a loss of $0.38 per share.

The airliner generated the highest revenues in history in Q1 of $2.3 billion, a jump of 34.1% year-over-year.

Looking forward, management reaffirmed its FY23 outlook and expects its revenues to grow in “high single digits to low double digits” while adjusted earnings is likely to come between $0.70 and $1 per share. In the second quarter, revenues are projected to rise in the range of 4.5% to 8.5% year-over-year while adjusted EPS is anticipated to be in the range of $0.35 to $0.45.

Joanna Geraghty, JetBlue’s President and COO commented, “Demand trends remain robust into the second quarter, with strong demand for leisure and visiting-friends-and-relatives (VFR) travel particularly during peak periods. Our TrueBlue Loyalty program continues to show encouraging trends with strong growth in co-brand card spend. In addition, the Northeast Alliance (NEA), which is already a significant revenue generator, is driving meaningful margin improvement as our service matures.”

Surprisingly, analysts are bearish about JBLU stock with a Moderate Sell consensus rating based on four Holds and two Sells.

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