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JetBlue Airways Corp cut its full-year profit forecast on Tuesday, citing a hit from the termination of its revenue-sharing deal with American Airlines that triggered an 8% fall in its shares in premarket trading.
The New York-based carrier now expects full-year adjusted profit of between 5 cents and 40 cents per share, compared with its previous forecast of between 70 cents and $1 per share.
American Airlines and JetBlue Airways, which is in the process of taking over Spirit Airlines, will begin to wind down their Northeast Alliance on July 21 following a U.S. judge’s order in May that cited competition concerns.
Royal Caribbean, the world’s second-largest cruise line operator, like peers has also been bumping up its ticket prices over the past year to protect margins from higher costs linked to fuel, labor and food. The Celebrity Cruises operator reported second-quarter revenue of USD 3.5 billion, which beat analysts’ estimates of USD 3.4 billion, according to data from Refinitiv.
JetBlue said on Tuesday its updated outlook for the year also reflects “a greater than expected shift of pent-up COVID demand to long-haul international markets which is pressuring demand for domestic travel during the peak summer travel period.” Excluding items, the company reported an adjusted net income for the second quarter of $152 million, or 45 cents per share, compared with a loss of $153 million, or 47 cents per share, a year earlier.
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