FMP
Jun 3, 2024 4:48 PM - Davit Kirakosyan
JetBlue Airways (NASDAQ:JBLU) projected a smaller decline in second-quarter revenue than previously anticipated due to strong travel demand, boosting its shares by 5% intra-day today.
While major U.S. airlines expect record passenger numbers for the summer, uneven demand on certain routes has caused overcapacity and impacted pricing power for some carriers.
JetBlue now predicts its second-quarter revenue to decrease between 6.5% and 9.5%, an improvement from its earlier forecast of a 6.5% to 10.5% decline.
The airline attributed this revision to better operational performance and recent trends in jet fuel prices, which have decreased over the quarter.
Despite higher operating costs due to ongoing inspections of Pratt & Whitney's Geared Turbofan (GTF) engines leading to the grounding of several aircraft, JetBlue has been optimizing its operations by cutting unprofitable routes and reallocating resources to more lucrative markets.
Additionally, JetBlue revised its fuel cost forecast, now expecting to spend $2.85 to $2.95 per gallon, down from its previous estimate of $2.98 to $3.13 per gallon.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...