JetBlue Airways Shares Plummet 15% on Q1 Revenue Decline

JetBlue Airways (NASDAQ:JBLU) shares plunged more than 15% intra-day today after the company reported its first-quarter results for 2024, which showed a narrower-than-expected loss but a decline in revenue. The airline announced an adjusted net loss of $145 million, or ($0.43) per share, beating analyst expectations by $0.09. However, its operating revenue fell 5.1% year-over-year to $2.2 billion.

The revenue decline and a 2.7% decrease in capacity YoY contributed to the stock's downturn, compounded by a cautious revenue forecast for the second quarter and the entire year. JetBlue's CEO, Joanna Geraghty, cited ongoing challenges from excessive capacity in the Latin region, which she anticipates will continue to pressure revenues and dampen the outlook for the year. Despite these challenges, she remains optimistic about the airline's ability to achieve profitability through its focused standalone strategy.

Operating expenses for the quarter rose 14.0% YoY to $2.9 billion, with cost per available seat mile increasing by 17.1%. Excluding special items, operating expenses saw a decrease of 3.7% YoY to $2.4 billion. The average fuel price per gallon for the quarter was $2.97.

For the upcoming second quarter, JetBlue expects revenues to decline between 10.5% and 6.5%, and forecasts a similar downward trend in full-year revenue by low single digits. The airline also projects a decrease in Available Seat Miles (ASMs) between 5.0% and 2.0% for the second quarter, with a comparable decline expected for the full year.