**JetBlue Shares Plummet After Revenue Forecast Cut, CEO Calls for More Cost Cuts**

Amsterdam, Netherlands – JetBlue Airways saw its shares plummet by over 10% in premarket trading after revising its 2024 revenue forecast, signaling a challenging path back to profitability for the airline. The company announced that second-quarter revenue is expected to decrease by as much as 10.5% compared to the previous year, a significant deviation from analysts’ predictions. Furthermore, JetBlue anticipates a drop in full-year sales in the low single digits, below the expectations set by Wall Street, following a forecast of flat sales earlier in the year.

JetBlue has been actively working on cost-cutting measures, discontinuing unprofitable routes and focusing on those with consistent demand and strong sales in premium classes. In a recent development, the planned merger between JetBlue and Spirit Airlines, valued at $3.8 billion, was called off due to antitrust concerns. These strategic decisions highlight the airline’s efforts to adapt to the evolving market dynamics and competitive landscape.

The revised outlook from JetBlue further emphasizes the growing disparity between the airline and its larger competitors like Delta and United. While these major carriers project profits, robust revenue, and record summer demand, JetBlue faces challenges in generating revenue, partially attributed to significant capacity and operational factors in its Latin American region. CEO Joanna Geraghty expressed confidence in the company’s refocused strategy and reiterated the commitment to achieving profitability in the future.

A setback for JetBlue comes in the form of a Pratt & Whitney engine recall that has led to the grounding of some of its aircraft. To address these challenges, the airline is actively exploring additional cost-cutting initiatives to mitigate financial pressures. Earlier in the year, JetBlue announced a deferral of $2.5 billion in aircraft spending until the end of the year, a move aimed at improving its financial position and operational efficiency.

In the first quarter of the year, JetBlue reported a loss of $716 million, equating to a loss of $2.11 per share, an increase from the loss of $192 million in the same period the previous year. After adjusting for one-time items, the adjusted loss per share narrowed to 43 cents, surpassing analyst expectations. Despite these financial challenges, the airline remains focused on implementing strategic measures to navigate the current economic uncertainties and return to a profitable trajectory.