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.”

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