: JetBlue Airways stock falls after it says it doesn’t expect a third-quarter profit

JetBlue Airways Corp. JBLU stock was down 6.8% in premarket trades on Tuesday after the domestic carrier warned it would post a potential third-quarter loss due to competition with international travel and other challenges. JetBlue swung to a second-quarter profit of $138 million, or 41 cents a share, from a year-ago loss of $188 million, or 58 cents a share. Adjusted second-quarter income for the airline totaled 45 cents a share, ahead of the analyst expectation of 44 cents a share, according to FactSet data. Second-quarter revenue at JetBlue increased by 6.7% to $2.61 billion from $2.445 billion in the year-ago period, and slightly ahead of the analyst estimate of $2.607 billion. For the third quarter, JetBlue said it would miss expectations due to the previously announced loss of its Northeast alliance with American Airlines AAL as well as a “challenging operating environment in the northeast and a greater than expected shift of pent-up COVID demand to long-haul international markets which is pressuring demand for domestic travel during the peak summer travel period.” For the third quarter, JetBlue now expects an adjusted loss of 20 cents a share to breakeven, below the analyst target of 40 cents a share in net income. For full-year 2023, JetBlue is projecting earnings between 5 cents a share and 40 cents a share, below the analyst estimate of 78 cents a share.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.