Jetblue stocks are drowned after disappointing expectations for unit revenues and costs

(Reuters) – Jetblue Airlines (JBLUThe high costs and unit revenues are expected without analysts’ expectations for the first quarter on Tuesday, which sent the shares of the New York -based transportation company in the morning.

The transportation company expects the revenues of the first quarter of each mile of seat available (RASM), which is the industry scale known as unit revenue, as agent of pricing power, ranging from a decrease of 0.5 % to 3.5 %, compared to the average expectations of analysts of 6.88 %, according to data It was collected by Lseg.

Jetblue said it expects Easter, which usually sees a strong rush to the holiday, to the second quarter will reduce unit revenues by about 1.5 % this quarter.

The costs of the unit, with the exception of fuel, are also expected, an increase of 8 % to 10 % in the current quarter.

The airline faces higher operating costs, as the continuous inspections of the RTX pratt & Whitney engines have been based on many of its aircraft.

Jetblue said that the founding aircraft will cause about 3 percentage in their basic profit in 2025, compared to reducing the 2.5 percentage points in the previous year.

For the fourth quarter, Jetblue reported a smaller loss than expected, which amounted to 21 cents per share, with the help of its costs for costs and improving prices. Analysts expected a modified 31 cents per share.

After its merger of $ 3.8 billion with spiritual airlines now in March 2024, Jetblue moved to strengthen its financial resources by postponing the delivery of 44 Airbus aircraft.

This step is expected to reduce the expected capital expenses by about $ 3 billion from 2025 to 2029.

It also reduced unbearable roads and has revealed plans to move the weak capacity to outstanding entertainment and popular markets.

The company’s operational revenues decreased by 2.1 % to $ 2.28 billion for the quarter ending on December 31, compared to Wall Street’s expectations of $ 2.25 billion.

(Chevanche Toyari reports in Bangaluru; Tahrir by Tasim Zahid)