From 24/7 Wall St. · David Moadel · · 1m
JetBlue Stock Surges 11% as Higher Fares Recapture Fuel Costs
JetBlue stock jumps 11% after higher fares offset fuel costs, outpacing Delta and American Airlines.
In brief
JetBlue stock jumps 11% after higher fares offset fuel costs, outpacing Delta and American Airlines. JetBlue stock rose 11% as higher fares recaptured fuel costs, while Delta and American Airlines stocks gained modestly. Originally reported by 24/7 Wall St..
JetBlue Stock Surge
JetBlue stock rose 11% early in the session to $2.63 after higher fares recaptured fuel costs.
“Resilient demand and strong yields drove revenue well ahead of our initial expectations, allowing us to recapture more of the increase in fuel costs than we initially expected.”
Delta and American Airlines Stocks
Delta stock rose 0.9% to $79.88, American Airlines stock rose 1% to $12.35, both trailing JetBlue's gains.
JetBlue's Financial Results
JetBlue reported operating revenue per available seat mile up 18.4% year-over-year with higher fares offsetting fuel costs.
Management Statement
Chief executive Joanna Geraghty stated higher fares recaptured more fuel cost increases than initially expected.
“Resilient demand and strong yields drove revenue well ahead of our initial expectations, allowing us to recapture more of the increase in fuel costs than we initially expected.”
Creditors and Restructuring
JetBlue's creditors hired restructuring advisers after stock fell sharply, but the airline claims liquidity to meet profitability targets.
Market Reaction
Sector funds show JetBlue's rally outpaces Delta and American Airlines, with airline stocks lagging the broader market.
The takeaway
JetBlue stock rose 11% as higher fares recaptured fuel costs, while Delta and American Airlines stocks gained modestly.
