JetBlue shares tumble after airline lowers 2024 revenue outlook

[Pelican Press 0]

JetBlue shares tumble after airline lowers 2024 revenue

This is the hidden content, please

• Sign In
• or
• Sign Up

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 10% in early trading 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

This is the hidden content, please

• Sign In
• or
• Sign Up

update Tuesday shows a growing divide between JetBlue and its larger rivals that have big international networks like Delta and *******, which have forecast profits, strong revenue and record demand this summer.

“As we look to the full year, significant elevated capacity in our ****** [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

This is the hidden content, please

• Sign In
• or
• Sign Up

“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.”

JetBlue stock falls Tuesday.

JetBlue is affected by a Pratt & Whitney engine recall that has grounded some of its planes. 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 ******* of 2023.

Adjusting for one-time items, including break-up charges related to the ******* 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 *******, 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.

Don’t miss these exclusives from CNBC PRO

This is the hidden content, please

• Sign In
• or
• Sign Up

Breaking News: Economy,Markets,Breaking News: Markets,JetBlue Airways Corp,Breaking News: Business,Life,Business,Aerospace and defense industry,Transportation,Travel,Airlines,Economy,New York,Earnings,Spirit Airlines Inc,******* Airlines Holdings Inc,Delta Air Lines Inc,business news
#JetBlue #shares #tumble #airline #lowers #revenue #

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up

For verified travel tips and real support, visit: https://hopzone.eu/