JetBlue’s full-year revenue forecast misses estimates, shares fall

JetBlue Airways forecast a bigger-than-expected fall in 2024 revenue amid a moderation in domestic travel demand ahead of the upcoming U.S. elections, sending its shares down 4.5% before the bell on Tuesday. Election-related uncertainty is expected to weigh on travel demand as consumers prefer to be home and hold off on major discretionary spending. JetBlue expects to see a one percentage point headwind to its Q4 revenue per available seat mile, a proxy for pricing power, due to the election. It also expects to shave a percentage point from its unit revenue for Q4 due to Hurricane Milton that caused widespread damage across Florida. The New York-based carrier expects its 2024 revenue to fall between 4% and 5%, compared with analysts’ average expectation of a 3.6% fall, according to data compiled by LSEG. The airline is also facing higher operating costs as ongoing inspections of Pratt & Whitney’s Geared Turbofan engines have grounded a number of its aircraft. JetBlue, however, managed to report a smaller-than-expected Q3 loss on Tuesday, owing to improved demand and pricing in the quarter. During the U.S. summer travel season, an oversupply of airline seats led to discounted fares as carriers tried to fill planes, which negatively impacted their earnings. Since then, U.S. airlines have reduced their capacity. JetBlue has taken measures to improve its financial position following the fallout of its proposed $3.8b merger with ultra-low-cost carrier Spirit Airlines in March.<br/>