JetBlue Airways recently announced that their September bookings have been worse than expected. The airline attributes this to disruptions caused by air traffic control issues and adverse weather conditions, which have been more severe than anticipated.
As a result, JetBlue expects its third-quarter revenue to be at the lower end of its previously provided outlook, which was disclosed in early August. Moreover, the disruptions have led to increased costs, and the airline now forecasts that non-fuel costs will align with the higher end of its guidance for the quarter.
In addition to these issues, the rising fuel costs pose further challenges for JetBlue. The company projects that it will pay around $2.95 per gallon for fuel in the third quarter, surpassing its previous guidance of $2.75 to $2.90 per gallon.
It is worth noting that JetBlue has not revised its full-year outlook at this time.
JetBlue’s situation is not unique, as nearly all major U.S. airlines have been impacted by unexpectedly high fuel costs. Moreover, low-cost carriers such as Southwest Airlines have also expressed concerns about a decline in demand as summer transitions into fall.
While facing these challenges, JetBlue Airways continues to navigate the current landscape of the airline industry.
