JetBlue Airways shares jumped by 7% in premarket trading on Thursday after the U.S. airline narrowed its annual adjusted loss forecast. With a previous forecast of a per-share adjusted loss of 65 cents to 45 cents for 2023, the airline now expects a per-share adjusted loss of 50 cents to 40 cents for the year.
While forecasting a narrower loss, JetBlue expects its annual revenue growth to rise, adjusting a 3% to 5% annual revenue growth forecast to a range of 4% to 5%. This comes as the U.S. carrier finds itself in the midst of a legal dispute with Spirit Airlines.
“Since late October, close-in bookings have outperformed expectations for both holiday peak and non-holiday travel periods,” JetBlue remarked in a regulatory filing on Thursday, justifying the narrower loss forecast.
U.S. airlines at large are expecting travel demand to remain resilient going into next year, dismissing concerns over potential demand vulnerability stemming from the impact of rising interest rates and rising prices on customers’ spending power.