May 19, 2024

MediaBizNet

Complete Australian News World

JetBlue shares fell after the airline cut its 2024 revenue forecast

JetBlue shares fell after the airline cut its 2024 revenue forecast

JetBlue has been cutting costs, culling unprofitable routes and focusing on those with consistent demand and high premium seat sales. The carrier last month canceled its merger agreement with budget airline Spirit Airlines after a judge blocked that $3.8 billion deal on antitrust grounds.

Tuesday's forecast update shows a growing divide between JetBlue and larger rivals with large international networks like Delta and United, which forecast strong profits, revenues and record demand this summer.

“As we look to the full year, there is a significant increase in capacity in our Latin region [America] “The region, which represents a significant portion of JetBlue's network, is likely to continue to put pressure on revenues and we expect a setback in our full-year outlook,” said Joanna Geraghty, who became CEO in February. In the earnings statement. “We have every confidence that continuing to take action on our refocused independent strategy is the right path forward to ultimately return to profitability again.”

JetBlue is affected by a Pratt & Whitney engine recall that grounded some of its planes. In an investor presentation on Tuesday, the airline said it was “actively exploring” further cost reductions.

JetBlue said earlier this year that it would postpone $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 to a loss of $192 million, or 58 cents per share, in the same period in 2023.

After adjusting for one-time items, including break-up charges related to the failed Spirit merger, JetBlue lost $145 million, or 43 cents per share, lower than the 52 cents adjusted loss forecast by analysts polled by LSEG.

READ  Oil prices fell but supply cuts kept Brent crude above $90 a barrel

Revenue declined 5.1% from a year ago to $2.21 billion, which was in line with LSEG's revenue forecast.