JetBlue shares tumble 25% after disappointing outlook
A JetBlue Airways plane prepares to take off from the Fort Lauderdale-Hollywood International Airport on January 31, 2024 in Fort Lauderdale, Florida.
Joe Raedle | Getty Images
JetBlue Airways shares tumbled Tuesday after the carrier’s financial outlook disappointed investors.
The New York-based airline forecast its unit costs, excluding fuel, will rise as much as 7% this year from 2024. In the first quarter, it said it expected this metric to rise as much as 10% this quarter year-over-year.
It estimated revenue could come in up to 0.5% lower to as much as 3.5% higher this quarter over 2024. Larger competitors Delta and United have been forecasting higher revenue growth, a sign of stronger airline pricing power.
The carrier expects its 2025 revenue to rise between 3% and 6% on flat capacity.
JetBlue is in the middle of a plan to reduce costs by culling unprofitable routes, deferring new aircraft, and drumming up revenue with higher-priced seats. CNBC reported Friday that JetBlue has offered senior pilots voluntary early retirement packages.
JetBlue lost two antitrust cases that blocked two of its growth strategies. In 2024, a federal judge blocked JetBlue’s planned acquisition of Spirit Airlines, which filed for Chapter 11 bankruptcy protection in November, and in 2023, JetBlue lost a case over its regional partnership with American Airlines.
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