Southwest Airlines, JetBlue Stocks Jump on Higher Revenue Outlook
rose on Thursday after the two airlines gave upbeat outlooks for second-quarter revenue, citing strong travel demand for the summer.
Southwest (ticker: LUV) stock rose 2.7% in early trading to $43.09, while JetBlue (JBLU) gained 3.7%.
Southwest said it now expects revenue to rise 12% to 15% versus 2019, before the start of the Covid-19 pandemic, compared with its previous forecast of an 8% to 12% increase.
“The company continues to experience strong load factors and an acceleration in bookings for summer travel,” Southwest said in a regulatory filing. Southwest said it is still expects its capacity, or available seat miles, to be down about 7% in the second quarter compared with prepandemic levels.
Cowen analysts lifted their forecast for Southwest’s earnings to reflect the updated forecast, saying they now think Southwest will earn $1.17 a share for the second quarter, up from their prior call of $1.05. “Management remains positive on both the quarter and the remainder of the year,” the analysts wrote in a research note. “It continues to expect strong adjusted operating profits and margins for both 2Q22 and FY22 barring any unforeseen events.”
JetBlue said it now expects second-quarter revenue to be “at or above” the high end of a previous forecast for an 11% to 16% increase. “JetBlue expects record revenue this summer,” the company said in a filing. The carrier also raised its guidance range for growth in available seat miles to 2% to 3% over 2019 levels from 0% to 3%.
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