JetBlue Airways (NASDAQ:JBLU), an airline company, soared in pre-market trading after it announced a financial update for its expected Q4 and FY23 results. The company stated that travel demand remained “healthy.” Indeed, since “late October, close-in bookings have outperformed expectations for both holiday peak and non-holiday travel periods.”
As a result, the company expects its available seat miles (ASM) to rise in the range of 2% to 3% year-over-year in the fourth quarter. In FY23, they will likely increase between 5.5% and 6.5% year-over-year.
However, JetBlue anticipates revenues to decline by 7% to 4% year-over-year in Q4. Still, this is an improvement from the previous forecast of a 10.5% to 6.5% decline. In addition, FY23 revenue is now expected to grow between 4% and 5% year-over-year instead of the initial forecast of 3% and 5%.
Moreover, JBLU anticipates its adjusted losses to narrow in Q4 to a range of -$0.35 to -$0.25 per share versus its prior projection of between -$0.55 and -$0.35 per share. In FY23, the company expects to report an adjusted loss in the range of -$0.50 to -$0.40 per share.
What is the Target for JBLU Stock?
Analysts remain sidelined about JBLU stock with a Hold consensus rating based on five Holds, one Buy, and one Sell. JBLU stock has slid by more than 20% year-to-date, and the average JBLU price target of $4.89 implies an upside potential of 3.4% at current levels.
