JetBlue Reports Smaller Loss in Q4 2024, But Stock Plunges 20% Due to Disappointing Outlook

JetBlue Airways recently reported its fourth-quarter 2024 financial results, revealing a smaller-than-expected loss. The company posted an adjusted loss of $0.21 per share on revenues of $2.28 billion, surpassing analysts' expectations of a $0.29 loss per share on $2.26 billion in revenue.

Despite this earnings beat, JetBlue's stock experienced a significant decline, dropping approximately 20% in its worst trading day ever. This downturn was primarily driven by the company's disappointing forward guidance. JetBlue projected first-quarter revenue per available seat mile (RASM) to range from a 0.5% decline to a 3.5% increase, falling short of analysts' expectations of a 6.88% growth. Additionally, the airline anticipates unit costs, excluding fuel, to rise by 8% to 10%, further concerning investors.

Several factors contributed to this cautious outlook. The shift of Easter to the second quarter and ongoing inspections on Pratt & Whitney engines, which have grounded several aircraft, have impacted JetBlue's revenue and costs. Furthermore, the company expects an increase in fuel prices per gallon to $2.65-$2.80, up from $2.47 in the fourth quarter.

In response to these challenges, JetBlue has taken steps to manage expenditures and adjust its operations. The airline delayed 44 Airbus jet deliveries, reducing capital expenditures by approximately $3 billion from 2025 to 2029. Additionally, JetBlue has cut unprofitable routes and plans to shift capacity to premium leisure and popular markets.

Despite these efforts, the combination of higher anticipated costs and a subdued revenue outlook has overshadowed the positive aspects of the earnings report, leading to a significant decline in JetBlue's stock price.