JetBlue shares tumble 9% after airline lowers 2024 revenue outlook

JetBlue
Airways
shares
tumbled
more
than
9%
in
premarket
trading
on
Tuesday
after
the
airline
lowered
its
2024
revenue
forecast,
a
setback
as
the
carrier
tries
to
return
to
profitability.

JetBlue
said
second-quarter
revenue
would
likely
drop
as
much
as
10.5%
on
the
year,
more
than
double
the
drop
analysts
polled
by
LSEG
expected.
The
New
York-based
carrier
forecast
full-year
sales
would
drop
in
the
low
single
digits,
after
estimating
flat
sales
for
the
year
in
its
January
report.

JetBlue
has
been
on
a
cost-cutting
spree,

culling
unprofitable
routes
and
focusing
on
those
with
steady
demand
and
high
sales
for
premium
seats.
The
carrier
last
month

called
off
its
merger
agreement
with
budget
carrier


Spirit
Airlines
after
a
judge
blocked
that
$3.8
billion
deal
on
antitrust
grounds.

The
outlook
update
Tuesday
shows
a
growing
divide
between
JetBlue
and
its
larger
rivals
that
have
big
international
networks
like


Delta
and


United,
which
have

forecast
profits,
strong
revenue
and

record
demand
this
summer.

“As
we
look
to
the
full
year,
significant
elevated
capacity
in
our
Latin
[America]
region,
which
represents
a
large
portion
of
JetBlue’s
network,
will
likely
continue
to
pressure
revenue
and
we
expect
a
setback
in
our
expectations
for
the
full
year,”
CEO
Joanna
Geraghty
said
in
an
earnings
release. “We
have
full
confidence
that
continuing
to
take
action
on
our
refocused
standalone
strategy
is
the
right
path
forward
to
ultimately
return
to
profitability
again.”