The airline is in the middle of a plan to reduce costs by culling unprofitable routes and drumming up revenue with higher-priced seats.

Shares of JetBlue Airways lost a quarter of their value after the company laid out tepid guidance for the first quarter, overshadowing solid results for the last three months of 2024. JetBlue is in th

Unit costs in 2025 will rise as much as 7% excluding fuel, the airline said Tuesday in a statement, outpacing analysts’ estimates on higher spending for compensation and aircraft maintenance. JetBlue shares fell as much as 18% as markets opened in New York, their biggest slump since Aug. 12.

JetBlue’s fourth-quarter results beat expectations, but the outlook for a key revenue metric was below forecasts.

JetBlue’s unit revenue guide implied deceleration year over year despite all the changes it has been making,” offered Melius Research analyst Conor Cunningham.

By Shivansh Tiwary and Rajesh Kumar Singh (Reuters) -JetBlue Airways shares plunged 28% on Tuesday after the New York-based carrier forecast lower-than-expected unit revenue and higher costs in the current quarter.

The company also expects the average fuel price per gallon to increase to a range of between $2.65 and $2.80 in the first quarter from $2.47 in the fourth quarter. The stock fell