JetBlue Airways Shares fell more than 10% in premarket trading on Tuesday after the airline cut its 2024 revenue forecast, as the airline tries to return to profitability.
The airline said second-quarter revenue could fall 10.5% year-on-year, more than double the drop expected by analysts surveyed by LSEG. New York-based JetBlue Airways forecast full-year sales to fall in the low single digits after reporting flat sales in January, also missing Wall Street expectations.
JetBlue Airways has aggressively cut costs, dropped unprofitable routes, and focused on stable demand and high sales for premium seats. Last month, the operator canceled a merger agreement with the budget airline. Atma Airlines A judge blocked the $3.8 billion deal on antitrust grounds.
Tuesday’s outlook update shows a growing rift between JetBlue and its larger rivals with larger international networks Delta And unityProfit forecasts include strong revenue and record demand this summer.
Joanna said: “Looking to the full year, significant capacity growth in the Latin America region, which accounts for a large portion of JetBlue’s network, will likely continue to pressure revenues and we expect a decline in full-year guidance.” Appointed CEO in February explained in the earnings release. “We are confident that continued action on our repositioned standalone strategy is the right path to ultimately returning to profitability.”
JetBlue Airways has been affected by the Pratt & Whitney engine recall which has grounded some of its aircraft. In an investor presentation on Tuesday, the airline said it was “actively exploring” additional cost-cutting measures.
JetBlue Airways said earlier this year it delayed $2.5 billion in aircraft costs until the end of the year.
JetBlue lost $716 million, or $2.11 per share, in the first three months of this year, compared with a loss of $192 million, or 58 cents per share, in the same period in 2023.
Adjusted for one-time items, JetBlue lost $145 million, or 43 cents a share, more than the adjusted loss of 52 cents expected by analysts polled by the London Stock Exchange Group (LSEG).
Revenue fell 5.1% from last year to $2.21 billion, in line with LSEG’s revenue expectations.
