JetBlue stock falling on Q3 loss, full-year guidance miss

JetBlue Airways (JBLU) published a narrower-than-expected loss in its third quarter earnings results — a loss of $0.16 per share — and eked by revenue estimates with a print of $2.36 billion. The airline operator's stock is falling in pre-market trading on Tuesday as it forecasts revenue declines in the coming quarter.

Morning Brief hosts Seana Smith and Brad Smith examine JetBlue's earnings print, taking into account the company's blocked merger with Spirit Airlines (SAVE) and new customer accommodations.

Watch Yahoo Finance's interview with Southwest Airlines (LUV) CEO Bob Jordan where he talks about the airline's transformation plans and its challenges related to Boeing's (BA) stalled aircraft production.

To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.

This post was written by Luke Carberry Mogan.

Video Transcript

Jetblue, reporting a narrower than expected third quarter loss but forecasting falling revenue for the current quarter.

Still, the company says it remains on track to hit its full year targets.

The company also announcing new plans for some of that extra leg room for seats to meet the growing premium travel demand here shares right now down by about 6.4%.

I think investors are just increasingly pricing in how much that's going to take and spend in some of those capital expenditures in order to pivot to premium here.

It's not an easy task at all, and I think their right to be doing this.

It's just how quickly this is expected to pay off, especially thinking about their hub here in New York City.

How the concentration of wealth would be clamouring for even more premium options out of that hub to some of the key cities that they service here and I. I think that's where perhaps we'll see a little bit more of that early, lean in, originating and emanating from New York.

Yeah, and I also think the big question going forward is also just what exactly that timeline of recovery looks like right?

You talk about all the external factors at play.

We know JetBlue has been dealt two pretty significant blows or setbacks that they say, just in terms of the ruling in terms of the acquisition of its spirit airlines that was blocked.

And then, of course, the breaking up of the joint venture with American Airlines.

So under their new CEO, lots of questions just about what exactly the plan looks like going forward.

JetBlue not alone, just in terms of reassessing and scaling back, some routes aren't as profitable as others.

And it's a similar to what we heard from Bob Jordan and Southwest CEO, who joined us yesterday talking about some of the perks that they are adding the strategy shift in order to really try to capitalise on that more premium traveller.

And and because we know where the margins are, we know that it is, uh, paying off, especially when you compare some of the performance of these underperformers or budget airlines, versus some of the larger names like united up on the screen.

Yeah, I I'll be excited for the extra leg room.

I'll take it every day, right?

You gotta pay up for it, though.

Are you willing to do that?

We'll see