JetBlue’s shares fall on quarterly loss as external disruptions weigh

By Doyinsola Oladipo and Anshuman Tripathy

Jan 27 (Reuters) – JetBlue Airways on Tuesday posted a bigger-than-expected fourth-quarter loss, citing factors including inclement weather and the government shutdown, sending the carrier’s shares down more than 6% in late morning trading.

The New York-based airline said the quarter was marked by a high volume of unforeseen external events, but its premium growth helped to boost revenue as U.S. carriers leaned on premium products and loyalty programs to offset tepid main cabin demand.

“Macro uncertainty pressured industry demand last year and impacted results,” said CEO Joanna Geraghty on an earnings call, adding that this impeded the airline’s path to restoring operating profitability last year. 

ADJUSTED LOSS PER SHARE AT 49 CENTS

JetBlue posted an adjusted loss of 49 cents per share for the quarter ended December 31, compared with a year-ago loss of 21 cents per share. Analysts had expected a loss of 45 cents apiece, according to data compiled by LSEG.

The carrier’s operating expenses per available seat mile, excluding fuel, rose 6.7% year-on-year during the quarter due to disruptions including the government shutdown and the Airbus Airworthiness Directive. The airline also said fuel prices were a headwind during the quarter. 

However, JetBlue posted operating revenues of $2.24 billion for the October-to-December period, compared with analysts’ estimates of $2.23 billion, due to a recovery in domestic demand and its premium growth.

“The majority of our RASM beat was driven by underlying demand strength, coupled with loyalty, ancillaries, and other revenue exceeding expectations,” said Geraghty.

JetBlue forecast revenue per available seat mile (RASM) – an industry metric commonly known as unit revenue, and a proxy for pricing power – between 0% and 4% for the first quarter and 2% to 5% for the full year.

NO MATERIAL IMPACT FROM STORM PREDICTED

JetBlue said it does not expect a material impact from the winter storm that disrupted air travel across a wide swath of the country given its timing. The carrier canceled about 1,100 flights over the weekend.

The airline said it expects to break even in 2026, and sees capacity growth between 2.5% and 4.5%. 

The carrier expects on average mid single-digit numbers of aircraft to be grounded in 2026 due to RTX’s Pratt & Whitney geared turbofan engine issues.

Peer Alaska Airlines last week forecast full-year profit below analysts’ expectations, citing seasonality, fuel-price volatility and economic uncertainty.

(Reporting by Anshuman Tripathy in Bengaluru and Doyinsola Oladipo in New York; Editing by Shailesh Kuber and Jan Harvey)