JetBlue Airways shares declined on Thursday after the carrier reported a wider-than-expected quarterly loss and reduced its full-year revenue outlook, citing persistent cost pressures and softer demand.
The New York-based airline posted a net loss of $127 million for the second quarter, compared with a loss of $104 million in the same period last year. Revenue fell 4% to $2.05 billion, missing analyst estimates of $2.12 billion, according to Refinitiv data.
JetBlue attributed the shortfall to weaker passenger demand, particularly in its premium cabin, and higher operating costs. The airline also lowered its full-year revenue guidance to a range of $8.1 billion to $8.3 billion, down from a prior forecast of $8.3 billion to $8.5 billion. Analysts had expected revenue of $8.4 billion.
Chief Executive Officer Robin Hayes acknowledged "challenging market conditions" but noted that the airline remains focused on cost discipline and capacity adjustments to restore profitability. JetBlue also reiterated its plans to accelerate debt reduction and improve liquidity in the near term.
The stock, which had already fallen 15% year-to-date before Thursday’s drop, extended declines by as much as 8% in after-hours trading following the results. Year-to-date, shares are down roughly 18% as investors weigh macroeconomic headwinds and industry-specific pressures.
Analysts at Jefferies downgraded JetBlue to "hold" from "buy," citing the weaker outlook and elevated cost structure. The airline’s shares were last down 7% at $12.80 in midday trading, extending a streak of underperformance relative to peers in the U.S. airline sector.
JetBlue’s challenges mirror broader pressures in the U.S. airline industry, where carriers are grappling with rising fuel costs, labor expenses, and softer domestic and international travel demand.
