JetBlue Airways (JBLU) gains after topping Q1 earnings, guidance expectations on robust demand

Shares of airline JetBlue Airways (NASDAQ: JBLU) are up more than 2% premarket Tuesday after it reported better-than-expected earnings in the first quarter.

The carrier posted an adjusted net loss of $0.34 per share in the quarter, $0.04 better than the analyst estimate of a loss of $0.38 per share. Meanwhile, revenue was $2.3 billion below the consensus estimate of $2.32 billion.

JetBlue's capacity in Q1 increased by 9% year-over-year. However, operating expenses per available seat mile also increased during the period, up 12.1% year-over-year, with the average fuel price at $3.50 per gallon, including hedges.

"We remain well on track in executing our comprehensive plan to enhance our long-term profitability and restore our historical earnings power," said Robin Hayes, JetBlue's Chief Executive Officer.

Looking ahead, the company guided above expectations. Second-quarter adjusted EPS is seen between $0.35 and $0.45, above the consensus of $0.30, with FY2023 EPS seen from $0.70 to $1.00, versus the consensus of $0.52.

Revenue is expected to climb between 4.5% and 8.5% in Q2 YoY, while FY2023 revenue is expected to rise in the high single digits to low double digits.

“For the second quarter, we expect strong revenue growth to continue as demand remains robust and as we see continued momentum from our commercial initiatives. We are forecasting a solidly profitable quarter, and we remain confident in our full-year earnings outlook," added Hayes.

By Sam Boughedda

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