HomeIndustriesJetBlue Cuts Profit Forecast After American Airlines Deal Ends

JetBlue Cuts Profit Forecast After American Airlines Deal Ends

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.

Tesla Delays the Launch of U.S.-Made Affordable EV

Electric vehicle maker Tesla is delaying the launch of its U.S.-made affordable car for at least several months according to a newest report by...

Netflix’s Resilience Praised by Wall Street Analysts After Strong Q1 Earnings

Streaming giant Netflix continues to be championed by Wall Street analysts, who view the company as “resilient” in a tough economic environment after strong...

Fed to “Wait for Greater Clarity” Before Making Policy Adjustment Says Chair Jerome Powell

The Federal Reserve will wait to see the impact of recent sweeping tariffs on the U.S. economy before considering making policy adjustments, according to...