A JetBlue airplane is shown at John F. Kennedy International Airport in New York, March 16, 2017. JetBlue Airways lost $188 million in the second quarter of 2022, as fuel costs nearly tripled and wiped out a large increase in revenue during the early part of the peak vacation-travel season. The loss reported Tuesday, Aug. 2, 2022, was wider than Wall Street expected. (AP Photo/Seth Wenig, File)
NEW YORK (AP) — JetBlue Airways lost $188 million in the second quarter, as fuel costs nearly tripled and wiped out a large increase in revenue during the early part of the peak vacation-travel season.
The loss reported Tuesday was wider than Wall Street expected. JetBlue was unable to keep pace with bigger rivals, who posted profits for the quarter on full planes and higher fares.
Shares of JetBlue fell 6% in late-morning trading Tuesday.
JetBlue gave the financial update just days after reaching an agreement to buy Spirit Airlines for about $3.8 billion. CEO Robin Hayes said the deal, which JetBlue expects to close by early 2024, will increase his airline's earnings per share in the first year after closing.
Antitrust regulators are already reviewing the deal, and it is unclear how long that process will take.
“Obviously we're not in control of the timeline,” Hayes said on a call with analysts. He said Spirit shareholders — who were poised to reject a merger with Frontier Airlines — will likely vote in the next three months.
In the meantime, JetBlue is counting on the addition of flights to London and a partnership with American Airlines in New York and Boston to help it become profitable. The Justice Department is suing to block the deal with American, saying it will reduce competition and hurt consumers.
JetBlue also announced it will speed up the retirement of some smaller planes to save money.
In the second quarter, fuel was JetBlue's largest expense, surging to $910 million from $336 million a year earlier. Labor costs rose 20%, to $695 million, as the New York-based airline hired more workers to avoid the high number of flight delays and cancellations it suffered in April.
The quarterly loss compared with a profit of $64 million a year earlier, when JetBlue received federal pandemic aid that has since ended.
The adjusted loss, excluding some non-recurring items, was 47 cents per share. Analysts expected a loss of 11 cents per share, according to a FactSet survey.
Revenue soared 63% from a year ago, to $2.45 billion, about in line with expectations.
Before you consider JetBlue Airways, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and JetBlue Airways wasn't on the list.
While JetBlue Airways currently has a "Strong Sell" rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Looking to generate income with your stock portfolio? Use these ten stocks to generate a safe and reliable source of investment income.
Get This Free Report