It was only a matter of time before JetBlue Airways issued updated third-quarter guidance. It was never going to be higher.
The low-cost airline joined many of its peers in delivering a revenue warning Thursday. But JetBlue stock, which has fallen in tandem with its rivals after their respective warnings, jumped about 3% Thursday.
In discussing the outlook, JetBlue’s management summarized all the headwinds facing U.S. carriers, particularly those more exposed to domestic travel. Finally, air traffic control and bad weather in the Northeast have also impacted revenue and led to higher disruption costs. As a results, costs excluding fuel will rise near the high end of its previous 2.5% to 5.5% range.
Aside from all the well-known headwinds, the uncertainty over JetBlue’s proposed merger with Spirit Airlines is another factor keeping the shares under pressure. The Justice Department has sued to block the tie-up, and the trial is due to begin next month.
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