JetBlue shares tumble nearly 19% after airline lowers 2024 revenue outlook
Silhouette
of
passenger
in
front
of
the
JetBlue
Airbus
A321neo
aircraft
spotted
on
the
apron
tarmac
docked
at
the
passenger
jet
bridge
from
the
terminal
of
Amsterdam
Schiphol
International
Airport
AMS
EHAM
in
the
Netherlands.
Nicholas
Economou
|
Nurphoto
|
Getty
Images
JetBlue
Airways
shares
tumbled
more
than
18%
Tuesday
after
the
airline
lowered
its
2024
revenue
forecast,
a
setback
as
it
tries
to
return
to
profitability.
The
carrier
said
second-quarter
revenue
would
likely
drop
as
much
as
10.5%
on
the
year,
more
than
double
the
decline
analysts
polled
by
LSEG
expected.
New
York-JetBlue
forecast
full-year
sales
would
drop
in
the
low
single
digits,
also
below
Wall
Street
expectations,
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,”
Joanna
Geraghty,
who
became
CEO
in
February,
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.”
Stock
chart
icon
JetBlue
stock
falls
Tuesday.
JetBlue
is
affected
by
a
Pratt
&
Whitney
engine
recall
that
has
grounded
some
of
its
planes.
“It’s
definitely
a
big
hinderance,”
Geraghty
told
CNBC
of
the
engine
issue. “Pratt’s
a
good
partner.
We’re
focused
on
trying
to
make
progress
on
compensation
with
them.
We’re
not
where
we
need
to
be.
…
But
that
is
ultimately
what
is
depressing
our
growth.”
Geraghty
said
the
airline
expects
lower
capacity
next
year.
In
an
investor
presentation
Tuesday,
the
airline
said
it
was “actively
exploring”
more
cost
cuts.
JetBlue
earlier
this
year
said
it
would defer
$2.5
billion
in
aircraft
spending until
the
end
of
the
year.
In
the
first
three
months
of
the
year,
JetBlue
lost
$716
million,
or
$2.11
per
share,
compared
with
a
loss
of
$192
million,
or
58
cents
a
share,
in
the
same
period
of
2023.
Adjusting
for
one-time
items,
including
break-up
charges
related
to
the
failed
Spirit
merger,
JetBlue
lost
$145
million,
or
43
cents
per
share,
narrower
than
the
52-cent
adjusted
loss
analysts
polled
by
LSEG
expected.
Revenue
dropped
5.1%
from
last
year
to
$2.21
billion,
matching
LSEG
revenue
expectations.
Bright
spots
included
strong
demand
in
the
peak
travel
period,
domestic
and
Europe
flights “as
well
as
continued
outsized
demand
for
our
premium
seating
options,”
said
JetBlue’s
President,
Marty
St.
George,
who
returned
to
the
airline
earlier
this
year.
—
CNBC’s
Phil
LeBeau
contributed
to
this
report.
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