Southwest, JetBlue raise forecasts on strong travel demand – Boston News, Weather, Sports

NEW YORK (AP) — Airline stocks rallied Thursday after Southwest Airlines and JetBlue Airways said summer travel revenue will be stronger than previously expected as travel rebounds after two years of the pandemic.

The comments the airlines have made in approval filings point to their ability to charge higher fares and still fill their planes due to strong traveler demand.

Southwest said second-quarter revenue will increase 12% to 15% compared to 2019 as summer travel bookings accelerate. The Dallas-based airline previously forecast an 8% to 12% gain.

Southwest expects to meet that revenue goal, though its passenger capacity will be about 7% lower than before the pandemic.

JetBlue said it expects continued record sales this summer, with sales rising 16% or more in the second quarter — reaching or exceeding the top of its previously forecast range for the period.

Helane Becker, an analyst at banking firm Cowen, said JetBlue’s announcement shows continued confidence in the airline’s ability to manage higher kerosene costs and weather disruptions that caused many flight cancellations in April.

Still, Becker said the optimistic forecast will only slightly reduce JetBlue’s expected loss in the second quarter. She raised her earnings forecast at Southwest.

Southwest shares are up 6% and JetBlue is up 5% in midday trade. Shares of rivals Delta, American, United and Alaska were also up 5% to 7%.

(Copyright (c) 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, transcribed or redistributed.)

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https://whdh.com/news/southwest-jetblue-boost-forecasts-on-strong-travel-demand/ Southwest, JetBlue raise forecasts on strong travel demand – Boston News, Weather, Sports

Nate Jones

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