JetBlue Airways recently raised its forecasts for the current quarter, indicating a positive trend in demand for domestic flights leading up to the holiday season. This development has resulted in a broad increase in airline stocks.
JetBlue's Shares Surge
During morning trading, JetBlue's shares experienced significant growth, surging more than 13% to $5.37. The stock performances of other major airlines were also on the rise, with American Airlines witnessing a nearly 4% increase to $13.97, Delta Air Lines seeing a 3% rise to $40.16, United Airlines achieving an almost 2% boost to $41.65, and Southwest Airlines' stock popping 5%.
Positive Outlook for Travel Demand
JetBlue expressed confidence in the continued health of travel demand, stating in a securities filing that close-in bookings have exceeded expectations for both holiday and non-holiday periods since late October.
Revised Q4 Projections
After initially anticipating a sales decline of 6.5% to 10.5% for the fourth quarter, JetBlue now forecasts a more moderate drop of 4% to 7%. Additionally, the company has adjusted its expected adjusted loss per share from a previous range of 35 cents to 55 cents down to 25 cents to 35 cents.
Addressing Operational Challenges
In a previous warning issued in October, JetBlue acknowledged that delays caused by air traffic control and weather conditions were negatively impacting its operations and earnings.