JetBlue posts smaller-than-expected loss as U.S. demand recovers
Over the past month, larger peers Delta and United have signaled that bookings are starting to stabilize, though at lower-than-expected levels, pointing to an uneven recovery.
In April, JetBlue joined several major airlines in pulling its 2025 financial forecast, citing uncertainty tied to the Trump administration's sweeping tariff policies and federal spending cuts that weighed on consumer travel.
'Demand for air travel improved as the quarter progressed, resulting in significant strength for bookings within 14-days of travel, as well as for peak travel periods,' said Marty St. George, JetBlue's president, adding that the momentum continued into July.
However, the carrier said it expects third-quarter revenue per available seat mile (RASM), an industry metric commonly known as unit revenue and a proxy for pricing power, to decline between two and six per cent.
It also reinstated its 2025 unit cost forecast and expects it to rise between five and seven per cent.
The carrier reported an adjusted loss of 16 cents per share for the quarter ended June 30, compared to analysts' estimate of a loss of 33 cents apiece.
Operating revenue was US$2.18 billion. Analysts, on average, were expecting $2.28 billion, as per data compiled by LSEG.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Shailesh Kuber)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Winnipeg Free Press
24 minutes ago
- Winnipeg Free Press
From Laos to Brazil, Trump's tariffs leave a lot of losers. But even the winners will pay a price
WASHINGTON (AP) — President Donald Trump's tariff onslaught this week left a lot of losers – from small, poor countries like Laos and Algeria to wealthy U.S. trading partners like Canada and Switzerland. They're now facing especially hefty taxes – tariffs – on the products they export to the United States starting Aug. 7. The closest thing to winners may be the countries that caved to Trump's demands — and avoided even more pain. But it's unclear whether anyone will be able to claim victory in the long run — even the United States, the intended beneficiary of Trump's protectionist policies. 'In many respects, everybody's a loser here,'' said Barry Appleton, co-director of the Center for International Law at the New York Law School. Barely six months after he returned to the White House, Trump has demolished the old global economic order. Gone is one built on agreed-upon rules. In its place is a system in which Trump himself sets the rules, using America's enormous economic power to punish countries that won't agree to one-sided trade deals and extracting huge concessions from the ones that do. 'The biggest winner is Trump,' said Alan Wolff, a former U.S. trade official and deputy director-general at the World Trade Organization. 'He bet that he could get other countries to the table on the basis of threats, and he succeeded – dramatically.'' Everything goes back to what Trump calls 'Liberation Day'' – April 2 – when the president announced 'reciprocal'' taxes of up to 50% on imports from countries with which the United States ran trade deficits and 10% 'baseline'' taxes on almost everyone else. He invoked a 1977 law to declare the trade deficit a national emergency that justified his sweeping import taxes. That allowed him to bypass Congress, which traditionally has had authority over taxes, including tariffs — all of which is now being challenged in court. Winners will still pay higher tariffs than before Trump took office Trump retreated temporarily after his Liberation Day announcement triggered a rout in financial markets and suspended the reciprocal tariffs for 90 days to give countries a chance to negotiate. Eventually, some of them did, caving to Trump's demands to pay what four months ago would have seemed unthinkably high tariffs for the privilege of continuing to sell into the vast American market. The United Kingdom agreed to 10% tariffs on its exports to the United States — up from 1.3% before Trump amped up his trade war with the world. The U.S. demanded concessions even though it had run a trade surplus, not a deficit, with the UK for 19 straight years. The European Union and Japan accepted U.S. tariffs of 15%. Those are much higher than the low single-digit rates they paid last year — but lower than the tariffs he was threatening (30% on the EU and 25% on Japan). Also cutting deals with Trump and agreeing to hefty tariffs were Pakistan, South Korea, Vietnam, Indonesia and the Philippines. Even countries that saw their tariffs lowered from April without reaching a deal are still paying much higher tariffs than before Trump took office. Angola's tariff, for instance, dropped to 15% from 32% in April, but in 2022 it was less than 1.5%. And while Trump administration cut Taiwan's tariff to 20% from 32% in April, the pain will still be felt. '20% from the beginning has not been our goal, we hope that in further negotiations we will get a more beneficial and more reasonable tax rate,' Taiwan's president Lai Ching-te told reporters in Taipei Friday. Trump also agreed to reduce the tariff on the tiny southern African kingdom of Lesotho to 15% from the 50% he'd announced in April, but the damage may already have been done there. Bashing Brazil, clobbering Canada, shellacking the Swiss Countries that didn't knuckle under — and those that found other ways to incur Trump's wrath — got hit harder. Even some of the poor were not spared. Laos' annual economic output comes to $2,100 per person and Algeria's $5,600 — versus America's $75,000. Nonetheless, Laos got rocked with a 40% tariff and Algeria with a 30% levy. Trump slammed Brazil with a 50% import tax largely because he didn't like the way it was treating former Brazilian President Jair Bolsonaro, who is facing trial for trying to lose his electoral defeat in 2022. Never mind that the U.S. has exported more to Brazil than it's imported every year since 2007. Trump's decision to plaster a 35% tariff on longstanding U.S. ally Canada was partly designed to threaten Ottawa for saying it would recognize a Palestinian state. Trump is a staunch supporter of Israeli Prime Minister Benjamin Netanyahu. Switzerland was clobbered with a 39% import tax — even higher than the 31% Trump originally announced on April 2. 'The Swiss probably wish that they had camped in Washington' to make a deal, said Wolff, now senior fellow at the Peterson Institute for International Economics. 'They're clearly not at all happy.'' Fortunes may change if Trump's tariffs are upended in court. Five American businesses and 12 states are suing the president, arguing that his Liberation Day tariffs exceeded his authority under the 1977 law. In May, the U.S. Court of International Trade, a specialized court in New York, agreed and blocked the tariffs, although the government was allowed to continue collecting them while its appeal wend its way through the legal system, and may likely end up at the U.S. Supreme Court. In a hearing Thursday, the judges on the U.S. Court of Appeals for the Federal Circuit sounded skeptical about Trump's justifications for the tariffs. 'If (the tariffs) get struck down, then maybe Brazil's a winner and not a loser,'' Appleton said. Paying more for knapsacks and video games Trump portrays his tariffs as a tax on foreign countries. But they are actually paid by import companies in the U.S. who try to pass along the cost to their customers via higher prices. True, tariffs can hurt other countries by forcing their exporters to cut prices and sacrifice profits — or risk losing market share in the United States. But economists at Goldman Sachs estimate that overseas exporters have absorbed just one-fifth of the rising costs from tariffs, while Americans and U.S. businesses have picked up the most of the tab. Walmart, Procter & Gamble, Ford, Best Buy, Adidas, Nike, Mattel and Stanley Black & Decker, have all hiked prices due to U.S. tariffs Monday Mornings The latest local business news and a lookahead to the coming week. 'This is a consumption tax, so it disproportionately affects those who have lower incomes,' Appleton said. 'Sneakers, knapsacks … your appliances are going to go up. Your TV and electronics are going to go up. Your video game devices, consoles are going to up because none of those are made in America.'' Trump's trade war has pushed the average U.S. tariff from 2.5% at the start of 2025 to 18.3% now, the highest since 1934, according to the Budget Lab at Yale University. And that will impose a $2,400 cost on the average household, the lab estimates. 'The U.S. consumer's a big loser,″ Wolff said. ____ AP Economics Writer Christopher Rugaber contributed to this story.
CBC
2 hours ago
- CBC
Trump dismisses weak jobs numbers as 'rigged' and fires labour statistics chief
U.S. President Donald Trump fired the U.S. commissioner of labour statistics after weak jobs numbers signaled tariffs weren't yet leading to his promised economic boom.
Canada News.Net
2 hours ago
- Canada News.Net
Tower Fire triggers mass evictions from partitioned Dubai apartments
DUBAI, U.A.E.: In the shadow of Dubai's gleaming towers and opulent penthouses, authorities have launched a sweeping campaign against illegal subletting, ordering thousands to vacate makeshift dwellings in overcrowded apartment buildings. The clampdown follows a major fire in June at a 67-story residential tower, which forced the evacuation of more than 3,800 residents. Officials blamed partitioned units for contributing to fire hazards and have begun aggressively enforcing housing regulations. Egyptian migrant worker Hesham has lived in a two-bedroom flat carved up to fit 10 men. His "room" is a closet-sized space barely wide enough for a mattress. At US$270 a month, it was all he could afford — until now. For low-paid migrant workers who power Dubai's service and construction sectors, the campaign has triggered panic. Many now fear eviction or fines, with no clear alternative for affordable housing in a city built for the wealthy. "We don't know what we'll do," said Hesham, 44, a salesman who spoke to the Associated Press under a first-name-only condition, fearing reprisals. "We don't have any other choice." Dubai's population has surged to nearly four million and is projected to reach 5.8 million by 2040. Much of the city's real estate boom caters to affluent expatriates, with luxury high-rises and million-dollar properties multiplying. According to real estate firm Knight Frank, nearly 20 percent of homes in Dubai were worth more than $1 million as of last year. Meanwhile, short-term rental prices are forecast to rise another 18 percent by the end of 2025. That growth has left a large portion of the city's residents — mostly migrants from Asia and Africa — priced out of legal housing. Many earn just $300 to $550 a month, and rely on partitioned flats or communal bunk-bed arrangements that cost as little as $100. By contrast, a one-bedroom legal unit averages around $1,400 a month, per Engel & Völkers. Migrant workers typically send a significant portion of their earnings home, leaving them with little for housing. While UAE law mandates employers to provide accommodation for workers earning under $400 monthly, many are employed informally, beyond the reach of regulation. "The crackdown will raise housing costs and create a lot of stress for people whose lives are already precarious," said Steffen Hertog, a Gulf labor expert at the London School of Economics. The June blaze that triggered the latest crackdown occurred in Dubai Marina, an upscale district. Police reported 532 occupied units in the tower — an average of seven people per apartment. While no significant injuries were reported, the incident highlighted the risks of over-occupied and partitioned homes. A deadlier fire in 2023 in Dubai's old Deira neighborhood claimed 16 lives and injured nine more. That apartment, too, had been illegally subdivided. Dubai Municipality issued a statement saying the new inspections are intended to "ensure the highest standards of public safety" and improve tenants' quality of life. It did not respond to questions about where displaced low-income residents are expected to go. For Ebony, a 28-year-old migrant from Ghana, the crackdown meant losing her shared loft space — a plywood bunk above a narrow cot. "They said we had to leave immediately," she recalled. "Now I sleep on a friend's floor. I don't know what comes next." With begging outlawed, labor unions banned, and no minimum wage guarantees, workers like Ebony and Hesham are left in limbo. Dubai's shimmering skyline offers little shelter for those who built it.
