Shares of airline JetBlue Airways (NASDAQ:JBLU) are up more than 2% premarket Tuesday after it reported better-than-expected earnings in the first quarter.
The carrier posted an adjusted net loss of $0.34 per share in the quarter, $0.04 better than the analyst estimate of a loss of $0.38 per share. Meanwhile, revenue was $2.3 billion below the consensus estimate of $2.32B.
JetBlue's capacity in Q1 increased by 9% year-over-year. However, operating expenses per available seat mile also increased during the period, up 12.1% year-over-year, with the average fuel price at $3.50 per gallon, including hedges.
"We remain well on track in executing our comprehensive plan to enhance our long-term profitability and restore our historical earnings power," said Robin Hayes, JetBlue's Chief Executive Officer.
Looking ahead, the company guided above expectations. Second quarter adjusted EPS is seen between $0.35 and $0.45, above the consensus of $0.30, with FY2023 EPS seen from $0.70 to $1.00, versus the consensus of $0.52.
Revenue is expected to climb between 4.5% and 8.5% in Q2 YoY, while FY2023 revenue is expected to rise in the high-single digits to low-double digits.
“For the second quarter, we expect strong revenue growth to continue as demand remains robust and as we see continued momentum from our commercial initiatives. We are forecasting a solidly profitable quarter, and we remain confident in our full-year earnings outlook," added Hayes.