(Reuters) – JetBlue Airways Corp cut its full-year profit forecast on Tuesday, citing a hit from the termination of its revenue-sharing deal with American Airlines that triggered an 8% fall in its shares in premarket trading.
The New York-based carrier now expects full-year adjusted profit of between 5 cents and 40 cents per share, compared with its previous forecast of between 70 cents and $1 per share.
American Airlines and JetBlue Airways, which is in the process of taking over Spirit Airlines, will begin to wind down their Northeast Alliance on July 21 following a U.S. judge’s order in May that cited competition concerns.
JetBlue said on Tuesday its updated outlook for the year also reflects “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.”
Excluding items, the company reported an adjusted net income for the second quarter of $152 million, or 45 cents per share, compared with a loss of $153 million, or 47 cents per share, a year earlier.
(Reporting by Kannaki Deka in Bengaluru; Editing by Anil D’Silva)
