Why JetBlue Stock Crashed Today

Core Viewpoint - JetBlue Airways reported a mixed Q3 performance, with a loss of $0.40 per share against expectations of $0.42, but the stock still fell 10.9% due to concerns over rising costs and declining revenue [1][5]. Financial Performance - Analysts anticipated JetBlue to report a loss of $0.42 per share on sales of $2.32 billion; however, the actual loss was $0.40 per share, indicating a slight outperformance [1]. - Revenue met expectations but decreased nearly 2% year-over-year, while operating revenue per available seat mile (RASM) fell by 2.7% year-over-year [2]. - Operating expenses per available seat mile, excluding fuel and special items, increased by 3.7%, contributing to financial losses [3]. Management Outlook - JetBlue's management expressed optimism about improving demand through the end of the year, which they believe will help balance cost growth with revenue growth [4]. - Despite management's positive outlook, Wall Street analysts predict continued losses for JetBlue, with the company losing $469 million over the past year and burning approximately $1.35 billion in cash [4][5].