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JetBlue (JBLU) Improves Q2 Revenue View on Enhanced Bookings

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JetBlue Airways Corporation (JBLU - Free Report) updated its guidance for the second quarter of 2021.

The airline continues to expect flown capacity to decline approximately 15% in the second quarter from the comparable period in 2019, per a SEC filing. With air-travel demand still lagging the pre-pandemic levels, the company plans to keep managing capacity on a rolling basis to align its network with demand.

With air-travel demand continually improving, especially on the leisure front, JetBlue has been witnessing improvement in bookings in recent weeks. Consequently, the carrier now anticipates revenues to decline 30-33% in the second quarter from the same period in 2019. This is narrower than the previously guided range of a decrease of 30-35%. The airline, however, gave a heads-up that it believes “demand and revenue recovery may be non-linear.”

Additionally, due to an uptick in fuel prices, JetBlue now estimates total operating expenses to decrease approximately 7% in the second quarter from the comparable period in 2019. Previously, the Long Island City, NY-based carrier predicted the same to decline around 8%.

The company forecasts second-quarter EBITDA in the range of ($115 million) – ($165 million), compared with the past guidance in the band of ($100 million) – ($200 million).

Zacks Rank & Key Picks

JetBlue carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are C.H. Robinson Worldwide (CHRW - Free Report) , Expeditors International of Washington (EXPD - Free Report) and Covenant Logistics Group (CVLG - Free Report) . While Expeditors and Covenant Logistics sport a Zacks Rank #1 (Strong Buy), C.H. Robinson carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of C.H. Robinson, Expeditors and Covenant Logistics have rallied more than 20%, 59% and 66% in a year’s time, respectively.

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