JetBlue Airways stock is seeing an increase ahead of the open on Thursday after the low-cost carrier raised its guidance for the current quarter due to strong holiday travel demand.
Improved Revenue Outlook
The company now anticipates a smaller decline in revenue for the fourth quarter compared to the same period last year. Previously, the forecast predicted a steeper drop, but it has now been adjusted to be between 4% and 7%. Furthermore, full-year revenue is expected to rise by 4% to 5%, an improvement from the previous outlook of 3% to 5%.
Narrowing Loss Forecast
JetBlue still expects to report an adjusted loss for the current quarter. However, the loss is projected to be narrower, ranging from 25 to 35 cents per share. This represents an improvement from the initial forecast of 35 cents to 55 cents per share.
Strong Travel Demand
According to a filing made by the company, demand for travel remains strong. Close-in bookings have surpassed expectations for both the holiday peak and non-holiday travel periods since late October.
Positive Market Response
The stock, which experienced a decline of 27% in 2023 as of Wednesday’s close, has surged by 9% in premarket trading following the news.