JetBlue gains as it seeks to ease debt concerns, raises annual forecast

By Reuters News10 hours ago Updated

** Shares of JetBlue Airways JBLU.O up 11% to $2.6 in extended trading after it sought to reassure investors of its financial health

** Company raises FY seat revenue growth forecast to 13.5% to 14.5%, from prior range of 10% to 12.5%; expects further margin expansion in Q4 despite sharply higher fuel costs

** Posts Q3 total debt of $8.39 billion, lower than previous quarter's nearly $8.5 billion

** Cash and cash equivalents drop to $1.26 billion from $1.95 billion

** Says it ended the quarter with $2.2 billion of liquidity, $2.8 billion in unencumbered assets

** JBLU posts Q3 adjusted loss of 60 cents per share versus 40 cents per share loss a year ago

** Wall Street expected a loss of 55 cents per share, according to data compiled by LSEG

** Of 18 brokerages, 13 rate it "hold" and 5 "sell" or lower; their median PT is $4 — data compiled by LSEG

** A senior creditors' group for JBLU is working with a restructuring adviser amid mounting debt concerns, WSJ reported late on Friday

** As of Friday's close, the stock is down 42.7% YTD