JetBlue Airways Corporation JBLU has unveiled encouraging third-quarter 2025 guidance.
JetBlue now anticipates available seat miles (ASMs) for the third quarter to be flat to up 1% year over year compared with the prior guidance of down 1% to up 2%. Further, JBLU anticipates third-quarter operating revenue per ASM (RASM) to decline in the range of 1.5%-4% year over year, an improvement from the prior outlook of 2%-6% decrease.
The encouraging guidance came on the back of solid air travel demand throughout the peak summer season. Consistency in air travel demand continued from the summer season through August and the Labor Day holiday, all of which was reflected in the rising number of bookings within 14 days of travel.
While JBLU continues to focus on improving reliability, solid operational performance in August also contributed to better-than-expected revenue performance. Although it seems to be too early to predict for the fourth quarter of 2025, JBLU is hopeful of witnessing positive numbers through year-end.
Declining expenses mark another major positive. JBLU lowered its third-quarter 2025 average fuel cost per gallon guidance to the range of $2.45-$2.55 from the previously guided range of $2.50 to $2.65. Lower fuel costs should boost the company’s bottom line, as fuel expenses represent a key input cost for any airline company.
Non-fuel unit costs benefited from cost-cutting efforts and solid operational performance in August. As a result, the company has lowered its consolidated operating costs per available seat mile (excluding fuel and special items) guidance. JBLU now anticipates third-quarter 2025 CASM, excluding fuel and special items, to increase in the range of 3.5-5.5%, down from the prior expectation of a 4%-6% increase.
Capital expenditures guidance for the third quarter has now been reduced to around $325 million from the prior view of $375 million.
JBLU currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Investors interested in the Transportation sector may also consider LATAM Airlines Group LTM and SkyWest SKYW.
LTM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LTM has an expected earnings growth rate of 45% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining one, delivering an average beat of 4.04%.
SKYW currently sports a Zacks Rank #1.
SkyWest has an expected earnings growth rate of 28.06% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.92%.
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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