Shares of JetBlue Airways (JBLU) tumbled more than 19% Tuesday after the discount air carrier reported lower-than-expected guidance on slowing demand for Latin American travel.
The airline said it anticipates current-quarter revenue will decline between 6.5% and 10.5%, with the higher amount being more than double analysts’ forecasts for a decrease. The airline said it anticipates full-year revenue falling by a low-single-digit percent, down from its previous flat outlook. That guidance also missed estimates.
CEO Joanna Geraghty, who took over in February, said in a release that JetBlue planned for too many flights to Latin America. She said “significant elevated capacity in our Latin region, which represents a large portion of JetBlue’s network, will likely continue to pressure revenue.”
JetBlue President Marty St. George noted the carrier began taking steps to cut expenses in the first quarter, including “a number of significant network changes, which are designed to free up unprofitable flying and reallocate …