JetBlue Reports Upbeat Q4 But Stock Dives On Lower Q1 Revenue Projections: Retail Shrugs It Off
Synopsis
The airline expects first-quarter revenue per available seat mile (RASM) at -0.5% to 3.5%, which is significantly lower than a Wall Street estimate of 4.8%. At the same time, fuel price per gallon is expected to be $2.65 - $2.80, compared to $2.47 in the fourth quarter.
Shares of JetBlue Airways Corporation (JBLU) tumbled over 22% on Tuesday after the airline’s revenue outlook fell short of Wall Street estimates and cost projections came in higher.
The airline expects first-quarter revenue per available seat mile (RASM) to be -0.5% to 3.5%, which is significantly lower than a Wall Street estimate of 4.8%. At the same time, the fuel price per gallon is expected to be $2.65-$2.80, compared to $2.47 in the fourth quarter.
For the fourth quarter, JetBlue reported an adjusted loss of $0.21 compared to an estimated loss of $0.31, according to FinChat. Total operating revenue fell 2.1% year-over-year (YoY) to $2.28 billion versus an analyst estimate of $2.26 billion.
CEO Joanna Geraghty said 2024 was a year of rapid change for JetBlue as it introduced its JetForward strategy.
"Looking ahead to 2025, we are laser-focused on executing JetForward and building on the momentum from 2024. While this year will not come without its challenges, our strategy is in place to tackle those obstacles head-on. With a healthy revenue backdrop, continued cost control, and incremental earnings from JetForward, we believe we are well-positioned to deliver on our goal of achieving a positive operating margin for the full year,” Geraghty said.
The fourth quarter saw capacity decrease 5% YoY and operating expense per available seat mile (CASM) declined 0.4% YoY.
The airline ended the quarter with $3.9 billion in unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities, excluding its $600 million undrawn revolving credit facility.
On Stocktwits, retail sentiment flipped into the ‘bullish’ territory (61/100) from ‘bearish’ a day ago, accompanied by ‘extremely high’ retail chatter.
Despite Tuesday’s plunge in stock price, retail users on Stocktwits expressed confidence in the stock’s near-term prospects.
JBLU shares have lost over 16% year-to-date but are up over 13% over the past year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.