JetBlue raises third-quarter fuel price forecast
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Branding for JetBlue Airlines is seen at the Farnborough International Airshow, in Farnborough, Britain, July 22, 2024. REUTERS/Toby Melville
Sept 10 (Reuters) - JetBlue Airways expects to pay more for fuel in the third quarter as the Iran war keeps prices elevated, while demand for travel remains strong.
The carrier said on Thursday it expects to pay $3.96 per gallon for fuel in the quarter, up from its prior forecast of $3.49. Its shares were down about 1% in premarket trading.
The U.S.-Israeli war on Iran has pushed up fuel prices, raising costs for airlines worldwide. JetBlue on Thursday also flagged weather and air traffic control related disruptions in July and August, particularly in the Northeastern U.S., driving an increase in cancellations and nudging operating costs higher.
The carrier, however, said healthy booking trends continued into September across peak and off-peak periods.
The airline expects its revenue per available seat mile to increase between 17% and 20% in the third quarter, compared with its prior forecast of a 12.5% to 16.5% rise, banking on travel demand and higher ticket pricing.
(Reporting by Nathan Gomes in Bengaluru; Editing by Shilpi Majumdar)
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