JetBlue Airways Corp reduced its full-year profit forecast on Tuesday after its revenue-sharing deal with American Airlines came to an end. Shares in the airline plunged by 8% during premarket trading.
With JetBlue in the process of acquiring Spirit Airlines, this low-cost airline and American Airlines began to wind down their Northeast Alliance on July 21 following a judge’s order that stemmed from competition concerns.
On Tuesday, JetBlue stated that its new full-year outlook reflects “a greater than expected shift of pent-up COVID demand to long-haul international markets which is pressuring demand for domestic travel during the peak summer travel period.”
Adjusted net income for the second quarter was $152 million, or 45 cents per share, far outpacing the loss of $153 million, or 47 cents per share posted a year earlier.