JetBlue Shares Decline More Than 4% On Q3 RASM View Cut
Zacks Investment Research | Sep 04, 2019 09:18PM ET
JetBlue Airways Corporation (NASDAQ:JBLU) has provided a bearish forecast for third-quarter unit revenues, following which its shares declined more than 4% at the close of business on Sep 4. This marks the carrier’s biggest decline in the past five months.
In an 8-k filing, the carrier revised its guidance for third-quarter revenue per available seat mile (RASM). It now anticipates RASM to either slide up to 2% or remain flat year over year. Previously, the metric was estimated to increase in the 0.5-3.5% range. The downside is due to 1.25 points negativity from low bookings to Puerto Rico, 0.75 points adversity each from Hurricane Dorian and challenges in Punta Cana as well as a 1-point headwind from lower-than-expected demand across its system.
As JetBlue struggles with low demand trends, its fellow airline players seem quite optimistic about the overall outlook. Evidently, at the Cowen and Company 12th Annual Global Transportation Conference held on Sep 4, Delta Air Lines (NYSE:DAL) and United Airlines (NASDAQ:UAL) have furnished a positive outlook for the third quarter as well as the full year.
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