JetBlue Airways (NASDAQ:JBLU) shares tumbled 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 (NYSE:SAVE) 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.
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.
JBLU shares sank $1.03, or 13.7%, to $6.48.