From CNBC: 2025-01-28 11:39:35

JetBlue Airways shares dropped after the airline’s financial forecast failed to meet expectations. The New York-based carrier predicted a potential 7% increase in unit costs, excluding fuel, for 2025. Revenue for the first quarter could be down by 0.5% to up by 3.5% compared to 2024, as larger competitors Delta and United forecast higher revenue growth.

JetBlue anticipates a revenue increase of 3% to 6% in 2025 with flat capacity. The airline is implementing cost-cutting measures by discontinuing unprofitable routes, delaying new aircraft purchases, and generating revenue through higher-priced seats. JetBlue recently offered senior pilots early retirement packages to reduce expenses.

JetBlue faced setbacks in growth strategy with two antitrust cases lost. A federal judge blocked its acquisition of Spirit Airlines in 2024, which filed for bankruptcy, and a case over its regional partnership with American Airlines in 2023. The airline is adjusting its plans to navigate these challenges.



Read more at CNBC:: JetBlue shares tumble 25% after disappointing outlook