JetBlue yanks its full-year outlook and hasn’t made a first-quarter profit since 2019
The budget airline reported earnings before the market opened on Tuesday, following its larger rivals’ reports last week.
This earnings season has made it clear: if you want to know the future, don’t ask airline companies.
Budget carrier JetBlue reported first-quarter earnings on Tuesday, following its big four rivals earlier this month. Like Delta Air Lines, American Airlines, Southwest Airlines, and low-cost rival Frontier Airlines, JetBlue yanked its full-year outlook.
Of the major US airlines, only United Airlines gave investors a 2025 forecast (actually, two forecasts).
JetBlue reported a loss per share of -$0.59, better than estimates of -$0.63, and $2.14 billion in revenue, in line with expectations.
The carrier’s shares ticked down about 2% in premarket trading Tuesday.
JetBlue lost $208 million in its first quarter as tariffs fueled a drop in travel demand — about $500 million better than its loss in the same period last year. The airline last posted a profit in the first quarter six years ago, in 2019.
JetBlue reported a 4.3% drop in capacity on the quarter, in line with its downwardly revised forecast from March. The company flew about 3% fewer passengers in the period.
The carrier expects demand to keep weakening in the second quarter, “where the booking curve is more exposed to macro uncertainty and deteriorating consumer confidence.”
Budget airlines were hurting before tariffs, with many opting to introduce premium seating in recent years to build revenue streams that are more resilient to consumer spending pullbacks.
JetBlue last December said it would install first-class seating and open airport lounges in some East Coast airports. The same logic fueled Southwest’s decision to end its open seating policy and introduce premium options with extra legroom — and start charging for bags.
