JetBlue (JBLU) has reported a second-quarter financial loss due to soaring fuel costs.
In Q2 2022, the airline posted a net loss of US$ 188 million despite a record-breaking revenue of US$ 2.4 billion. This compares to a net profit of US$ 64 million in the second quarter of 2021.
Looking ahead, the New York-based carrier expects to post its first profit since the start of the COVID-19 pandemic in the third quarter of 2022.
“For the third quarter, we expect unit revenue to increase between 19 and 23%, to the highest absolute levels in our history as strong demand combined with a tight supply backdrop help offset the high price of fuel,” said Joanna Geraghty, JetBlue’s (JBLU) President and Chief Operating Officer.
Geraghty added: “Revenue is tracking well to help deliver a profitable quarter, and early bookings keep us cautiously optimistic about the fall.
The airline also said it will speed up the retirement of its Embraer E190 fleet by one year to mid-2025 versus previous plans to exit the fleet by the end of 2026.
While JetBlue (JBLU) is seeking to return to profitability, it is also in the mode of trying to get regulatory approval to acquire Spirit Airlines (S64) (SAVE) and become the fifth biggest airline in the US. In July 2022, Spirit Airlines (S64) (SAVE) agreed to merge with JetBlue (JBLU) after several months of deliberations between both JetBlue (JBLU) and Frontier Airlines.
“I’m very pleased we found a path forward with Spirit, and we can’t wait to welcome their incredible 10,000 Team Members to JetBlue (JBLU) as we create a true, national low-fare challenger to the dominant ‘Big Four’ airlines,” said Robin Hayes, JetBlue’s (JBLU) CEO.
