JetBlue’s unit revenue guide implied deceleration year over year despite all the changes it has been making,” offered Melius Research analyst Conor Cunningham.
The airline is in the middle of a plan to reduce costs by culling unprofitable routes and drumming up revenue with higher-priced seats.
JetBlue is executing a cost-cut strategy of cutting unprofitable routes, deferring aircraft deliveries and pricing premium seats. It was also reported by CNBC that the airline has already offered senior pilots voluntary early retirement packages as part of the restructuring.
JetBlue’s earnings results for the last quarter were better than analysts’ expectations to lose $0.29 per share. The company did miss its revenue target as year-over-year sales dropped by -2.1%. This marks five out of six quarters of declining revenue as JetBlue focuses on a balance sheet turnaround.
Unit costs in 2025 will rise as much as 7% excluding fuel, the airline said Tuesday in a statement, outpacing analysts’ estimates on higher spending for compensation and aircraft maintenance. JetBlue shares fell as much as 18% as markets opened in New York, their biggest slump since Aug. 12.
While airfares are up over the past year and U.S. air travel exceeds pre-COVID levels, airlines are struggling with acquiring new planes.
New flights have been added for Kansas City and Philly fans, with one airline adding flights on a route it doesn't normally serve.
American Airlines and JetBlue have agreed to pay a group of U.S. states nearly $2 million in legal fees after the states won a trial challenging the airlines' now-blocked U.S. Northeast partnership.
JetBlue stock price has underperformed other American airline companies like United Airlines, Delta, and American Airlines. It has dropped by over 63% from its highest level in 2021, bringing its valuation to $2.
JetBlue Airways Corp. shares tumbled after the carrier projected higher costs this year than Wall Street expected.
Venmo payment options are the latest announcement in a broader effort from JetBlue to enhance its services and boost profits. The struggling low-cost carrier has searched for new revenue streams as larger airlines introduce their own budget options, increasing competition for those flyers.
United Airlines CEO Scott Kirby proclaimed Wednesday that “We are the best airline in the history of aviation.” How will American CEO Robert Isom respond?