Key Takeaways

Shares of JetBlue ( JBLU ) tumbled over 20% Tuesday morning after the airline's downbeat outlook for the first quarter and upcoming fiscal year overshadowed a better fourth quarter than analysts had expected.

The airline reported a $44 million, or 13 cents per share , net loss for the fourth quarter, on $2.27 billion in revenue . Analysts had expected a larger net loss of $114.86 million, or 33 cents per share, on a similar $2.25 billion in revenue, according to estimates compiled by Visible Alpha.

For the first quarter of 2025, JetBlue expects its available seat miles (ASM) to decline 2% to 5% year-over-year, with revenue per ASM projected to range from a 0.5% decline to a 3.5% gain, while analysts had expected the metric to rise 5% year-over-year. JetBlue said it also expects cost per ASM to rise 8% to 10% in the first quarter.

The airline also expects cost per ASM to rise 5% to 7% for the full fiscal year, with revenue per ASM projected to rise 3% to 6% compared to the metric staying flat in 2024.

"While this year will not come without its challenges, our strategy is in place to tackle those obstacles head-on," JetBlue CEO Joanna Geraghty said, noting that the airline's "healthy revenue backdrop" and cost control put it on track to "deliver on our goal of achieving a positive operating margin for the full year."

JetBlue shares were down as much as 25% in Tuesday morning trading to $6.07.

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