JetBlue Reports Upbeat Q4 But Stock Dives On Lower Q1 Revenue Projections: Retail Shrugs It Off
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.
FollowShares 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.
JBLU’s Sentiment Meter and Message Volume as of 10:14 a.m. ET on Jan. 28, 2025 | Source: Stocktwits
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.
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