(Corrects day to “Monday” not “Tuesday” in paragraph 1)
Oct 26 (Reuters) – JetBlue Airways reported a bigger-than-expected quarterly loss on Monday, as a surge in fuel costs outweighed gains from fare hikes and additional fees.
The carrier, however, raised its full-year forecast for unit revenue growth to 13.5% to 14.5%, from its earlier range of 10% to 12.5%, signaling confidence in sustaining higher fares.
JetBlue shares jumped 8% in choppy trading after the bell. They had closed down nearly 10% following reports that the airline’s creditors were working with restructuring advisors amid mounting debt concerns.
JetBlue said it ended the quarter with $2.2 billion of liquidity.
Airlines in the US have so far relied on fare hikes, checked baggage fees and capacity controls to boost revenue, as they contend with volatile fuel prices that have made it harder to forecast costs and earnings. Also, the rise in jet fuel prices has outpaced fare hikes by airlines.
JetBlue said it paid an average of $3.91 per gallon of fuel in the July-September quarter, up 57% from a year ago, and slightly below the rate of $3.96 a gallon it forecast last month. Unit revenue, a measure of pricing power, rose just 18.4%.
The New York-based airline posted an adjusted loss of 60 cents per share for the three months to September 30, compared with a 40-cent loss in the year-ago period. Analysts expected a loss of 55 cents per share, according to data compiled by LSEG.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Devika Syamnath and Diti Pujara)
