Why JetBlue Stock Plummeted Today

Shares of JetBlue Airways (NASDAQ: JBLU) fell Tuesday. The stock lost 25.7% as of market close but was down as much as 28.9% earlier in the day. The move down comes as the S&P 500 and Nasdaq composite gained 0.9% and 2%, respectively.

JetBlue reported earnings Tuesday morning. Despite exceeding expectations, the company reported weak guidance, disappointing investors.

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Less-than-stellar quarter

The budget airline reported sales of $2.27 billion for the fourth quarter of 2024, losing $0.21 a share. The loss was significantly less than Wall Street's expected $0.29 a share. JetBlue's capacity declined; its top-line revenue was smaller year over year as well.

The company is in the midst of several efforts to attain profitability once more and grow sales. JetForward, the company's strategy to do so under CEO Joanna Geraghty, will continue into 2025 as the carrier is "laser-focused on executing [it] and building on the momentum from 2024."

JetBlue's guidance disappoints

Despite the company's efforts, the guidance it set for 2025 underwhelmed investors, leading to its stock falling. The company expects to operate fewer flights in the first quarter than last year and the revenue growth it set out was well below previous guidance.

Much will hinge on how successfully the company can continue to implement JetForward. Although the program, which includes restructuring routes and paring down its fleet in order to become more efficient, has already borne fruit, it's unclear if it will be enough to truly turn the tide.

Other airline stocks fared better but were mostly down.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.