JetBlue Airways shared better-than-expected second-quarter earnings that saw the airliner recording a surprise profit. Its shares jumped more than 21% as a result.
JetBlue reported a profit of $25 million in Q2, while Wall Street analysts expected the airliner to record a loss. It also had earnings of $0.08 per share versus the estimates of $0.13 per share loss. The company’s operating revenue came at $2.43 billion, 6.9% down from the year prior but more than $2.40 billion expected by analysts.
The surprise profit is a result of a new strategy that saw the company move away from unprofitable routes, around 50 of them, and double down on routes where JetBlue historically had strong performances.
The strategy, which includes increasing the number of planes with premium seating, is expected to result in a pretax profit of $800 million to $900 million in the next three years. JetBlue will also postpone its plans to buy $3 billion worth of planes in order to improve its cash flow.
“We are actively reinvesting in our core geographies in New York, New England, Florida and Puerto Rico, while exiting routes and BlueCities that don’t meet our financial hurdle rate,” said JetBlu’s President Marty St. George.
JetBlue stock traded at $7.20 on Tuesday, marking a 36.62% increase year-to-date.