JetBlue Stock Drops Following Disappointing Revenue and Cost Forecasts

The airline projects lower-than-expected unit revenue growth and higher operating costs, citing challenges from grounded aircraft and shifting holiday demand.

JetBlue forecasts first-quarter unit revenue growth between -0.5% and 3.5%, falling short of analysts' expectations of 6.88%.
The airline's operating costs, excluding fuel, are expected to rise by 8% to 10% in the first quarter of 2025.
Ongoing inspections of Pratt & Whitney engines have grounded several aircraft, reducing JetBlue's projected core profit by 3 percentage points for 2025.
JetBlue reported a smaller-than-expected adjusted loss of 21 cents per share for the fourth quarter of 2024, beating analysts' forecast of a 31-cent loss.
The company is implementing cost-saving measures, including postponing Airbus jet deliveries and cutting unprofitable routes, as part of its JetForward strategy to achieve profitability in 2025.