In the second quarter, JetBlue posted a loss but still expects to make a profit in the third it remained cautious about growth this summer as costs jetBlue agreed to buy Spirit Airlines last week for $3.8 billion.
In a statement on Tuesday, JetBlue Airways said it expects to return to a profit for the first time since the pandemic began this quarter, but it would remain cautious about growth during the period of rising costs.
Despite making a record $2.45 billion in revenue in the second quarter, the airline New York-based airline lost $188 million as fuel and labor costs were prohibitive.
The airline’s third-quarter capacity will be as much as 3% less than in 2019, indicating that JetBlue is restricting growth just like other airlines who are struggling to improve their reliability.
the company reported record revenue for the second quarter, and it’s on track to do the same for the third quarter and generate its first quarterly profit since the start of the pandemic, CEO Robin Hayes said in a statement.
Last week, JetBlue announced it finally had a deal to acquire ultra-low-cost carrier Spirit Airlines for $3.8 billion in cash after a drawn-out bidding war with discounter Frontier Airlines. It was announced that Frontier’s deal to merge with Spirit broke down just hours before the JetBlue-Spirit deal was announced.
JetBlue executives will address the deal and answer questions about travel demand in a call scheduled for 10 a.m. Tuesday.