JetBlue Stock Drops 14% on Revenue Forecast

JetBlue Airways experienced a significant stock drop after forecasting a lower-than-expected first-quarter revenue per available seat mile (RASM), predicting a range from a 0.5% decline to a 3.5% growth, below analysts' expectations of around 6.88% growth. Despite this, JetBlue posted a smaller-than-expected fourth-quarter loss of 21 cents per share, outperforming analyst projections, and reported a 2.1% decline in operating revenue to $2.28 billion, surpassing Wall Street expectations. Higher operating costs, due in part to grounded aircraft from engine inspections, are anticipated to impact future profits by reducing core profit by 3 percentage points in 2025. JetBlue has implemented strategies such as cutting unprofitable routes and postponing Airbus jet deliveries to manage costs and bolster finances following its failed merger with Spirit Airlines. The airline's focus on cost-saving initiatives and the JetForward strategy aims to drive profitability, with expectations of a positive operating margin for the year. Overall, while JetBlue has faced challenges, it continues to outperform market expectations in earnings and revenue, with hopes of maintaining a stable financial trajectory.