Earnings beat and United alliance approval lift JetBlue, even as profit remains elusive
JetBlue reported its second-quarter earnings before the market opened on Tuesday.
JetBlue hasn’t found much profit in the flying-people-around business lately. That trend continued this quarter, as seen in JetBlue’s latest earnings report, released Tuesday.
Still, things are looking up for the airline.
JetBlue posted an adjusted loss of $0.16 per share, beating Wall Street expectations of a loss of $0.33 per share, per analysts polled by FactSet. JetBlue’s adjusted quarterly net loss of $58 million also exceeded estimates: analysts expected a loss of $117 million.
JetBlue posted $2.36 billion in sales on the quarter, also better than expected. The carrier flew 19.24 million passengers in the first half of this year, down 3.6% from last year.
Like most of its US rivals, JetBlue yanked its full-year outlook in April as tariffs shook the travel industry. Now, JetBlue says demand is “turning a corner.”
“We are encouraged to see that momentum carry into July and, we are optimistic that demand will continue to improve through the end of the year,” JetBlue President Marty St. George said.
Also putting wind beneath investors’ wings is the news that the Department of Transportation on Tuesday approved JetBlue’s planned “Blue Sky” alliance with United Airlines, first announced in May. Under the deal, JetBlue and United customers will be able to use and earn points from either airline’s frequent flyer programs interchangeably.
United will also gain access to JFK Airport, through JetBlue’s slots, beginning in 2027.
JetBlue shares climbed 6% in premarket trading, while United ticked up less than 1%.
