JetBlue lowers its revenue expectations for 4Q

JetBlue Airways on Wednesday lowered its passenger revenue expectations for the fourth quarter, saying its plan to hold out for higher peak holiday fares is not playing out as well as it expected.

Its shares tumbled nine per cent in morning trading.

Speaking at an investor conference, Chief Financial Officer Ed Barnes said not as many passengers as the airline expected are buying higher last-minute fares. The New York airline now believes passenger revenue per available seat mile will increase by 10 to 13 per cent in the September through December period, compared with a previous expectation of 12 to 15 per cent.

Revenue per available seat mile is expected to increase by eight to 10 per cent, down from a previous forecast of 10-12 per cent growth.

Barnes also announced JetBlue plans to give more perks to passengers who purchase its seats with added legroom next year, including an option to speed through security.

It wasn't immediately clear where this service would be offered.

It is part of the New York airline's ongoing strategy to lure more business travellers. The company began offering priority boarding to those who shell out extra for the roomier seats this year.

JetBlue is also planning on doubling its number of partner airlines by the end of next year. It wants to add between six and eight partners next year in New York and Boston; it currently has seven.

There are 25 airlines at JFK International Airport in New York that aren't affiliated with airline alliances.

"We basically want to be friends with everybody at JFK," Barnes said.

- AP