JetBlue Airways (NASDAQ:JBLU) shares fall sharply on word the carrier had slashed its 2023 outlook and warned of a potential loss in the current quarter as travelers opt for destinations abroad and the carrier grapples with the end of its partnership with American Airlines in the Northeast.
JetBlue forecast adjusted earnings per share for the full year ranging from five cents to 40 cents, down from an earlier estimate for per-share earnings of as much as $1.
The New York-based carrier said it could post an adjusted loss of as much as 20 cents in the third quarter with revenue down 4% to 8% from the same period last year.
The airline’s shares were down close to 5% in premarket trading after reporting second-quarter results.
Adjusted earnings per share came in at 45 cents vs. 44 cents expected.
Revenue was $2.61 billion vs. $2.61 billion expected
JetBlue reported net income of $138 million for the second quarter, or 41 cents a share, up from a net loss of $188 million, or 58 cents a share, a year earlier. Revenue rose 6.7% to $2.61 billion, roughly in line with analyst estimates.
JBLU shares started Tuesday down 61 cents, or 7.9%, to $7.16.
