JetBlue cuts third-quarter capacity-growth forecast after summer disruptions

  • JetBlue cut its third-quarter capacity-growth forecast after summer operational disruptions.
  • JetBlue expects available seat miles to increase 1.5% to 3.5%, versus earlier guidance of 3% to 6%.
  • Weather and air traffic disruptions increased cancellations during July and August, especially in the Northeastern U.S.

JetBlue Airways cut its third-quarter capacity-growth forecast after bad weather and other operational disruptions during the summer. The airline now expects available seat miles, a measure of passenger capacity, to increase 1.5% to 3.5%, down from its previous guidance of 3% to 6%. JetBlue also expects to pay $3.96 per gallon for fuel, up from its earlier forecast of $3.49, as the U.S.-Israeli war on Iran keeps prices elevated. Shares fell 3.10% on Thursday after declining about 1% in premarket trading. Weather and air traffic control disruptions in July and August, particularly in the Northeastern U.S., increased cancellations and operating costs. Despite those challenges, booking trends remained healthy through September across peak and off-peak periods. JetBlue raised its forecast for revenue per available seat mile to a 17% to 20% increase from an earlier projection of 12.5% to 16.5%.

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