JetBlue forecasts smaller 2024 revenue dip as domestic travel demand picks up

(Reuters) – JetBlue Airways (NASDAQ:JBLU) said on Wednesday it expects a smaller-than-expected drop in its 2024 revenue as domestic travel demand rebounded following the U.S. presidential election.

Shares of the carrier rose more than 5% in premarket trading.

JetBlue now expects annual revenue to decline between 3.5% and 4.5%, compared with the 4% to 5% fall projected earlier.

The airline had in October forecast a bigger-than-expected fall in 2024 revenue amid a moderation in domestic travel demand ahead of the U.S. elections.

The New York-based airline said on Wednesday improved bookings closer to departure dates over the Thanksgiving week boosted revenue during the November holiday peak.

The airline also said bookings for December travel exceeded its previous expectations.

JetBlue said it now expects its 2024 revenue per available seat mile, a proxy for pricing power, to drop between 3% and 4%, compared with the 2.5% to 4.5% decline it estimated earlier.