JetBlue gains on Q2 beat, introduces $1 2028 EPS target

Investing.com -- JetBlue Airways Corporation (NASDAQ: JBLU) reported second quarter results before the open on Tuesday, topping analyst expectations, sending shares higher premarket.

The airline posted a loss of -$0.66 per share compared to the consensus estimate of -$0.70. Revenue reached $2.7 billion, slightly above the $2.69 billion analyst estimate, representing a 14.5% increase from the prior year period.

The carrier's revenue per available seat mile increased 10.9% YoY, driven by strong demand and commercial initiatives under its JetForward transformation strategy. The airline introduced a 2028 earnings per share target of at least $1.00, supported by expected JetForward benefits reaching approximately $1.2 billion of annual incremental EBIT in 2028. Shares rose 2.5% following the announcement.

"Our second quarter performance reflects the strength of our JetForward strategy and the focused execution of our crewmembers, as strong customer demand and our decisive actions enabled us to recover fuel costs more quickly than we anticipated," said Joanna Geraghty, chief executive officer.

For the third quarter, JetBlue expects revenue per available seat mile growth of 12.5% to 16.5% YoY. The midpoint of 14.5% suggests continued strong revenue momentum. The company projects full-year 2026 revenue per available seat mile growth of 10.0% to 12.5% YoY, with an adjusted operating margin of -2.0% to -5.0%.

The airline's cost per available seat mile excluding fuel increased 2.4% YoY in the second quarter, coming in 1.6 points better than the midpoint of guidance. However, average fuel prices of $4.23 per gallon were $1.83 higher YoY, representing a 76% increase.

JetBlue's JetForward transformation has generated $470 million of cumulative incremental EBIT through June 2026 and remains on track to deliver $850 million to $950 million of annual incremental EBIT by year-end 2027. Premium revenue per available seat mile increased approximately 13%, while loyalty revenue grew 13% YoY.

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