JetBlue cites ‘staggering’ delays while forecasting loss

JetBlue Airways Corp.’s shares tumbled the most in more than a year after the carrier forecast a worse-than-expected loss this quarter, citing constraints on its operations from air traffic control limits to too many seats for sale across the industry.

The adjusted loss in the fourth quarter will be 35 to 55 cents a share, the company said in a statement Tuesday. That compares to an average 21-cent deficit projected by analysts in estimates compiled by Bloomberg. Revenue will decline in a range of 6.5% to 10.5% from 2022, JetBlue said, also missing expectations.

“While we have been able to offset some of the cost associated with the challenging operational backdrop, the sheer magnitude of the air traffic control and weather-related delays has been staggering,” Chief Financial Officer Ursula Hurley said in the statement.

Its shares fell 11% at 9:31 a.m. in New York, the biggest intraday decline since June 2022. The stock tumbled 35% this year through Monday.

The comments show how some US carriers have been hit worse than others by a shortage of air traffic personnel and flying limits at several major airports in the northeast US to help ease congestion. The industry is also grappling with waning domestic demand, aircraft delivery delays and parts shortages, while some mid-sized carriers are cutting fares to help fill their planes.

JetBlue’s growth this quarter will be driven primarily by international routes with industry capacity “outpacing domestic demand during off-peak travel periods,” Chief Operating Officer Joanna Geraghty said in the statement.Six JetBlue aircraft are currently grounded for inspections and repairs linked to a manufacturing defect in geared turbofan engines made by RTX Corp.’s Pratt & Whitney. That number may increase to the low double digits by the end of next year, the airline said.

The carrier had a third-quarter adjusted loss of 39 cents a share, worse than the 28-cent loss expected by analysts. Revenue was about $2.4 billion. JetBlue’s earnings outlook for the full year also fell short of estimates.