Street Calls of the Week
JetBlue Airways Corp. (NASDAQ:JBLU) issued an operational and financial update Thursday, revising its third quarter 2025 guidance with improved projections for revenue and expenses. The update was provided in a press release statement included in a filing with the U.S. Securities and Exchange Commission. According to InvestingPro data, the airline currently operates with a significant debt burden, with a debt-to-equity ratio of 3.91, while maintaining a market capitalization of approximately $2 billion.
According to JetBlue, demand for air travel remained strong throughout the summer, with momentum carrying through August and the Labor Day holiday. The company reported that bookings within 14 days of travel were particularly robust. Operational performance in August was described as strong, contributing to better-than-expected revenue results. Despite these positive signals, InvestingPro analysis reveals that 8 analysts have recently revised their earnings downward for the upcoming period, suggesting continued challenges ahead. For comprehensive insights and additional ProTips, investors can access the detailed Pro Research Report available on InvestingPro.
JetBlue now expects available seat miles (ASMs) for the third quarter to be flat to up 1% year-over-year, compared to previous guidance of down 1% to up 2%. The company projects operating revenue per ASM (RASM) to decline 1.5% to 4% year-over-year, an improvement from the prior outlook of a 2% to 6% decrease.
On the expense side, JetBlue forecasts non-fuel unit costs (CASM ex-fuel) to increase 3.5% to 5.5% year-over-year, compared to previous guidance of a 4% to 6% increase. The company also projects a lower average fuel price per gallon for the quarter, now estimated at $2.45 to $2.55, down from the earlier range of $2.50 to $2.65. Capital expenditures for the quarter are now expected to be approximately $325 million, compared to the previous estimate of $375 million.
The company noted that it remains encouraged by current booking trends for the fourth quarter, though it is still early in the booking curve.
JetBlue’s updated guidance reflects continued execution on cost initiatives and benefits from lower fuel prices. The company’s financial outlook includes certain non-GAAP measures, and the guidance does not reflect potential impacts from tariffs.
All information is based on a press release statement filed with the SEC.
In other recent news, JetBlue Airways reported its second-quarter earnings for 2025, surpassing analyst expectations. The airline achieved an earnings per share (EPS) of -$0.21, better than the anticipated -$0.33, marking a 36.36% surprise. Additionally, JetBlue exceeded revenue forecasts, bringing in $2.4 billion compared to the expected $2.29 billion. In terms of network expansion, JetBlue announced plans to introduce new routes in Florida, including its first service to Vero Beach and a return to Daytona Beach. These flights will operate daily, year-round from Boston Logan International Airport and New York’s John F. Kennedy International Airport starting in December 2025. The company’s recent performance and strategic moves have captured the attention of investors and analysts alike.
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