JetBlue Airways Corp. (NASDAQ: JBLU) slid in morning trading at the time of writing on Tuesday after the airline lowered its FY23 outlook. The company now expects its FY23 revenues to rise in the range of 6% to 9% while adjusted earnings are forecasted to be between $0.05 and $0.40 per share.
In fiscal Q3, JetBlue anticipates revenues to decline in the range of 8% to 4% year-over-year while it is likely to swing to a loss of $0.20 or just about breakeven.
Joanna Geraghty, JetBlue’s President and COO commented, “Looking ahead, we are updating our full-year earnings outlook to reflect near-term headwinds related to the termination of the NEA, a challenging operating environment in the northeast and a greater than expected shift of pent-up COVID demand to long-haul international markets which is pressuring demand for domestic travel during the peak summer travel period.”
In the second quarter, JBLU’s operating revenues went up by 6.7% year-over-year to $2.6 billion, in line with analysts’ estimates of $2.61 billion. The company reported adjusted earnings of $0.45 per share in Q2 as compared to a loss of $0.47 per share in the same period last year, in line with consensus estimates.
Analysts are bearish about JBLU stock with a Moderate Sell consensus rating based on three Holds and two Sells.