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JetBlue raised Q3 capacity and RASM guidance on strong summer bookings and cost control.
United Airlines expanded its winter schedule, adding flights to 15 cities, including Orlando and Las Vegas.
Ryanair flew 21M passengers in August, marking its eighth straight month of traffic growth.
In the past week, JetBlue Airways’ (JBLU - Free Report) management stated that booking trends were impressive throughout the peak summer season. As a result, the low-cost carrier gave an improved view for capacity growth and operating revenue per available seat mile (RASM) for the September quarter. Meanwhile, United Airlines (UAL - Free Report) expanded its winter schedule with the addition of flights to 15 cities.
An expansion update from Alaska Airlines, the wholly-owned subsidiary of Alaska Air Group (ALK - Free Report) , was also available in the past week. European carrier Ryanair Holdings (RYAAY - Free Report) reported impressive traffic numbers for the month of August, driven by upbeat air travel demand. Mexican carrier Controladora Vuela Compania de Aviacion (VLRS - Free Report) , also known as Volaris, carried 4% more passengers in August than a year ago.
1 JetBlue now anticipates available seat miles (ASMs) for the third quarter to be flat to up 1% year over year compared with the prior guidance of down 1% to up 2%. Further, JBLU anticipates third-quarter operating revenue per ASM (RASM) to decline in the range of 1.5%-4% year over year, an improvement from the prior outlook of 2%-6% decrease.
Consistency in air travel demand continued from the summer season through August and the Labor Day holiday, all of which was reflected in the rising number of bookings within 14 days of travel. Strong operational performance during August, in addition to the carrier’s cost management actions, aided JBLU’s non-fuel unit costs. JBLU now expects third-quarter costs per available seat mile (excluding fuel and special items) to increase in the range of 3.5-5.5%, down from the prior expectation of a 4%-6% increase.
2. As part of its expanded winter schedule, United Airlines aims to add flights to 15 cities, including Orlando, Fort Lauderdale and Las Vegas. Currently, UAL serves more than 225 U.S. cities and operates more than 4,000 domestic flights per day on average. This latest schedule expansion brings the count to 45 flights per day to Orlando, 30 to Fort Lauderdale and 43 to Las Vegas.
3. Alaska Airlines is set to enhance its international footprint with the launch of a new nonstop service from Seattle to Reykjavík, Iceland, beginning May 28, 2026. This expansion-oriented move not only provides passengers with access to Iceland’s natural wonders but also reinforces Alaska’s role as a global connector from the U.S. West Coast.
Through its expanded partnership with Icelandair (Iceland’s flagship carrier), the airline will offer seamless onward connections to multiple European destinations under a single ticket, underscoring Alaska’s growing ambition to compete in the transatlantic market.
4. In August. VLRS reported a 4.7% year-over-year increase in consolidated capacity (measured in available seat miles). Consolidated traffic, measured in revenue passenger-miles (RPM), grew 1.9% year over year. Although traffic improved on a year-over-year basis, it failed to outpace capacity expansion. As a result, the load factor decreased 2.3 percentage points year over year to 84.7%.
5. In August, Ryanair transported 21 million passengers, representing a 2% year-over-year increase. Apart from a year-over-year surge, RYAAY’s August traffic also reflects a straight eight-month improvement at a stretch from the beginning of 2025. The August load factor of 96% remained flat on a year-over-year and sequential basis, reflecting consistent passenger demand for the airline's services. During August 2025, RYAAY operated more than 114,000 flights. Ryanair currently sports a Zacks Rank #1 (Strong Buy).
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that most airline stocks traded in the red over the past week. However, the losses were muted in nature. The NYSE ARCA Airline Index declined marginally to $67.53. Over the course of the past six months, the NYSE ARCA Airline Index increased by 8%.
What's Next in the Airline Space?
With carriers like UAL, scheduled to participate in the Morgan Stanley Laguna Conference on Sept. 11, 2025, investors will keenly await updates. A few August traffic reports are also expected in the coming days.
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Airline Stock Roundup: JBLU's Bullish Q3 View, RYAAY & UAL in Focus
Key Takeaways
In the past week, JetBlue Airways’ (JBLU - Free Report) management stated that booking trends were impressive throughout the peak summer season. As a result, the low-cost carrier gave an improved view for capacity growth and operating revenue per available seat mile (RASM) for the September quarter. Meanwhile, United Airlines (UAL - Free Report) expanded its winter schedule with the addition of flights to 15 cities.
An expansion update from Alaska Airlines, the wholly-owned subsidiary of Alaska Air Group (ALK - Free Report) , was also available in the past week. European carrier Ryanair Holdings (RYAAY - Free Report) reported impressive traffic numbers for the month of August, driven by upbeat air travel demand. Mexican carrier Controladora Vuela Compania de Aviacion (VLRS - Free Report) , also known as Volaris, carried 4% more passengers in August than a year ago.
A traffic-related update was also present in the previous week’s write-up.
Recap of the Latest Top Stories
1 JetBlue now anticipates available seat miles (ASMs) for the third quarter to be flat to up 1% year over year compared with the prior guidance of down 1% to up 2%. Further, JBLU anticipates third-quarter operating revenue per ASM (RASM) to decline in the range of 1.5%-4% year over year, an improvement from the prior outlook of 2%-6% decrease.
Consistency in air travel demand continued from the summer season through August and the Labor Day holiday, all of which was reflected in the rising number of bookings within 14 days of travel. Strong operational performance during August, in addition to the carrier’s cost management actions, aided JBLU’s non-fuel unit costs. JBLU now expects third-quarter costs per available seat mile (excluding fuel and special items) to increase in the range of 3.5-5.5%, down from the prior expectation of a 4%-6% increase.
2. As part of its expanded winter schedule, United Airlines aims to add flights to 15 cities, including Orlando, Fort Lauderdale and Las Vegas. Currently, UAL serves more than 225 U.S. cities and operates more than 4,000 domestic flights per day on average. This latest schedule expansion brings the count to 45 flights per day to Orlando, 30 to Fort Lauderdale and 43 to Las Vegas.
3. Alaska Airlines is set to enhance its international footprint with the launch of a new nonstop service from Seattle to Reykjavík, Iceland, beginning May 28, 2026. This expansion-oriented move not only provides passengers with access to Iceland’s natural wonders but also reinforces Alaska’s role as a global connector from the U.S. West Coast.
Through its expanded partnership with Icelandair (Iceland’s flagship carrier), the airline will offer seamless onward connections to multiple European destinations under a single ticket, underscoring Alaska’s growing ambition to compete in the transatlantic market.
4. In August. VLRS reported a 4.7% year-over-year increase in consolidated capacity (measured in available seat miles). Consolidated traffic, measured in revenue passenger-miles (RPM), grew 1.9% year over year. Although traffic improved on a year-over-year basis, it failed to outpace capacity expansion. As a result, the load factor decreased 2.3 percentage points year over year to 84.7%.
5. In August, Ryanair transported 21 million passengers, representing a 2% year-over-year increase. Apart from a year-over-year surge, RYAAY’s August traffic also reflects a straight eight-month improvement at a stretch from the beginning of 2025. The August load factor of 96% remained flat on a year-over-year and sequential basis, reflecting consistent passenger demand for the airline's services. During August 2025, RYAAY operated more than 114,000 flights. Ryanair currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
The table above shows that most airline stocks traded in the red over the past week. However, the losses were muted in nature. The NYSE ARCA Airline Index declined marginally to $67.53. Over the course of the past six months, the NYSE ARCA Airline Index increased by 8%.
What's Next in the Airline Space?
With carriers like UAL, scheduled to participate in the Morgan Stanley Laguna Conference on Sept. 11, 2025, investors will keenly await updates. A few August traffic reports are also expected in the coming days.