JetBlue's stock slides 16%, on pace for biggest decline in 4 years, after first-quarter loss widens

By Ciara Linnane and James Rogers

JetBlue warned that its full-year performance would be soft

JetBlue Airways Corp.'s stock slid 16.4% Tuesday after the airline's first-quarter loss widened significantly from a year ago and the company warned that its full-year performance would be soft.

The stock is on pace for its largest percent decrease since March 18, 2020, when it fell 19.5%, Dow Jones Market Data show.

The company said it had a loss of $716 million, or $2.11 a share, for the quarter, wider than the loss of $192 million, or 58 cents a share, posted in the year-earlier period. Excluding one-time items, the company's per-share loss was 43 cents, narrower than the consensus estimate of a 52-cent loss from FactSet analysts. Revenue fell 5.1% to $2.209 billion from $2.328 billion a year ago, while the consensus was $2.202 billion.

Related: Delta's results are further proof that the carrier is a winner, say analysts

"As we look to the full year, significant elevated capacity in our Latin region, which represents large portion of JetBlue's network, will likely continue to pressure revenue and we expect a setback in our expectations for the full year," Chief Executive Joanna Geraghty warned in a statement.

The company will continue to cut back on unprofitable locations and reallocate resources to proven markets, said JetBlue President Marty St. George. In the statement, JetBlue gave an update on its strategic network changes, explaining that it is scaling back at Los Angeles International Airport and reallocating flights to more profitable opportunities in core leisure markets. The company's departure count will be down by roughly one-third, effective June 13, it said.

JetBlue (JBLU) is now expecting second-quarter revenue to be down 10.5%-6.5% and expects full-year revenue to be in the low single digits. The stock has gained 13.2% in the year to date, outpacing the S&P 500 's gain of 6.2%.

Related: Alaska Air's stock climbs to 8-month high as quarterly results beat views

JetBlue's results weighed on a number of other airline stocks. Shares of American Airlines Group Inc. (AAL), which reports first-quarter results before market open Thursday, are down 1.1%. Shares of United Airlines Holdings Inc. (UAL), which recently reported first-quarter results and forecast a second-quarter profit above Wall Street's expectations, were down premarket but are up 0.4% in morning trading.

Delta Air Lines Inc.'s stock (DAL) was down premarket but is up 0.8% in morning trading. Earlier this month, Delta delivered record first-quarter revenue, boosted by accelerating demand for business travel, while giving strong guidance. Alaska Air Group Inc.'s stock (ALK) was down slightly premarket but is up 0.9% in morning trading. Last week, Alaska Air shares rallied toward an eight-month high after the airline reported a narrower-than-expected first-quarter loss and revenue that beat analyst estimates.

-Ciara Linnane -James Rogers

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04-23-24 1159ET

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