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Investing.com – JetBlue (NASDAQ:JBLU) stock slumped by more than 7% Tuesday following comments from a senior company official that seemed to suggest that the airline’s return to prepandemic performance may take time.
“We are committed to generating better than prepandemic earnings in the next few years by growing revenue and controlling costs, and we are confident that we are on the right path to expand margins in a sustainable way,” said Ursula Hurley, JetBlue’s acting chief financial officer.
According to Joanna Geraghty, JetBlue’s president and chief operating officer, the airline’s third-quarter revenue is likely to be lower by anywhere between 4% and 9% from 2019 period’s $2.08 billion.
The company expects its third-quarter earnings before interest, taxes, depreciation and amortization to range between $75 and $175 million. It aims to generate pre-tax profits in July and August.
Capacity in the ongoing quarter is likely to be flat to 3% down from 2019 quarter levels. It was 15% lower in the second quarter from the same period two years ago.
Second-quarter total operating revenue soared almost seven-fold to $1.49 billion from $215 million as the airline carried more passengers and aircraft utilization rose. But revenue was still lower by 29% from the 2019 quarter levels.
Diluted earnings per share rose to 20 cents from a loss of $1.18 in the second quarter of 2020.
