Shares of JetBlue (JBLU) - Get Report winged higher Tuesday after the airline reported better-than-expected quarterly numbers, despite some early turbulence over softer revenue projections for the remainder of 2019.
JetBlue's stock price rose nearly 6% to $18.57 a share after the airline beat analysts' expectations on both earnings and revenue.
JetBlue reported adjusted earnings of 59 cents a share during the third quarter, shooting past the 53-cent estimate of analysts surveyed by Zacks Investment Research. The airline reported revenue of $2.086 billion, a shade higher than the $2.076 billion of analysts surveyed by FactSet.
JetBlue also reported a significant increase in capacity during the third quarter, rising 4.8% and helping "more than offset impact of hurricane Dorian and runway construction in Fort Lauderdale and JFK," said Joanna Geraghty, JetBlue's president and chief operating officer, in a press statement.
Still, the airline reported a 0.9% drop in a key metric, revenue available per seat mile, RASM, though it was slightly lower than the "mid-point of our updated guidance range of (2.0)% to 0.0%," the airline said.
Investors initially bailed out JetBlue stock in premarket trading before bouncing back after the market opened, with the airline now projecting a potential decline in RASM for the fourth quarter between 0.5% to 3.5%.