02:50 PM EDT, 09/05/2024 (MT Newswires) -- Shares of JetBlue Airways ( JBLU ) climbed intraday Thursday after the carrier improved its third-quarter revenue forecast and lowered its expectations for fuel costs.

The airline now expects revenue for the September quarter to range from falling 2.5% to increasing 1% on a year-over-year basis, according to a filing with the Securities and Exchange Commission.

JetBlue ( JBLU ) had previously forecast a 1.5% to 5.5% annual decline from 2023's third-quarter revenue of $2.35 billion. Analysts are modeling for revenue of $2.29 billion in the ongoing period, according to Capital IQ. Shares of JetBlue ( JBLU ) advanced 8.5% in afternoon trade.

The company's operational performance improved year over year this summer travel season amid better in-month bookings led by the Latin region. JetBlue ( JBLU ) said it made progress on its $300 million in revenue initiatives and benefited from other airlines' cancellations due to a technology outage caused by CrowdStrike's ( CRWD ) software update in July. Expenses have declined quarter-to-date due to moderating fuel prices and cost control efforts, according to JetBlue ( JBLU ).

JetBlue ( JBLU ) forecasts fuel price per gallon in the $2.70 to $2.80 range, down from its earlier projection in the $2.82 to $2.97 range. Operating costs per available seat mile excluding fuel is expected to rise 5% to 7% in the third quarter, compared with a 6% to 8% increase it previously projected.

The company now sees available seat miles falling by 3% to 5% in the quarter, compared with an earlier guidance of a 3% to 6% decline.

In August, the airline closed three financing transactions with gross proceeds totaling $3.2 billion, an investor presentation showed. The company plans to use the proceeds to fund capital expenditures in 2024 and 2025, repurchase notes and boost liquidity.

For the full year, management raised its interest expense forecast to between $370 million and $380 million compared with its prior $320 million to $330 million expectation, according to the securities filing.

JetBlue ( JBLU ) is expecting flat year-over-year capacity growth in 2025 due in part to issues with RTX's (RTX) Pratt & Whitney geared turbofan engines. The airline had an average of 11 aircraft on the ground in 2024 due to the issue and expects the number of grounded aircraft to be in the mid-to-high teens in 2025.

Price: 5.46, Change: +0.43, Percent Change: +8.45