JetBlue sees no profit this year on excess industry capacity, grounded planes

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JetBlue’s shares were down about 17% at $6.25 in afternoon trading

A JetBlue passenger jet lands with New York City as a backdrop, at Newark Liberty International Airport in New Jersey in December, 2019.on Tuesday warned it no longer expects to break even on an adjusted operating margin basis this year as bloated industry capacity in Latin America has depressed its revenue.

Still, JetBlue expects revenue in the second quarter to fall as much as 10.5% from a year ago. Full-year revenue in 2024 is estimated to decline in the low-single-digit percentage range, compared with its prior forecast for revenue to be roughly flat. Chief Executive Joanna Geraghty said the airline also needs to cut costs to the current operating environment.

It has deferred about $2.5 billion in aircraft capital expenditure and offered buyouts to employees in corporate, airport and customer support functions.

 

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