The airline upgraded its revenue guidance in a securities filing
A nice fiscal tailwind is helping out JetBlue Airways (JBLU), the company told investors Thursday. It said in a securities filing that it expects its third-quarter 2024 revenue to be higher than last year instead of lower — thanks in part to a boost from its competitors’ huge setback this summer. The airline’s shares are up nearly 10%.
“JetBlue’s revenue performance quarter-to-date was benefited by several factors, including improving in-month bookings, particularly in the Latin region, and continued progress from its previously announced $300 million worth of revenue initiatives,” it said. “The Company also recognized revenue uplift from the re-accommodation of customers affected by other airlines’ cancellations due to technology outages in July.”
Instead of anticipating that its third-quarter revenue could be more than 5% lower than it was a year before, the carrier now thinks it could be 1% higher.
The “technology outages” JetBlue referred to are better known as the CrowdStrike $CRWD fiasco. A bungled cybersecurity update ended up wreaking havoc in its customers’ computer systems, and lots of airline passengers had a very bad day as a result.
When the likes of American Airlines, Spirit Airlines, and especially Delta Air Lines were struggling with extensive delays and cancellations — the latter says it lost $500 million behind the mess — JetBlue’s systems weren’t affected. That means it was able to take on bookings for stranded flyers who didn’t want to deal with waiting for other carriers to carry them to their destinations.
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