JetBlue Airways, which is wavering on its proposed deal to take over South Florida-based Spirit Airlines, posted a $104 million net loss for its fourth quarter on Tuesday, and said its is lowering capacity for the entirety of 2024.
But the New York-based discount airline, which along with Spirit is a predominant carrier at Fort Lauderdale-Hollywood International Airport, said nothing further about the possibility of breaking off its stalled $3.8 billion buyout, which was blocked by a federal judge in Boston earlier this month. Both airlines are appealing the decision, but JetBlue said last week that unspecified conditions might scuttle the agreement. Spirit said it expects JetBlue to follow through.
JetBlue’s stock slipped by 1.5% in premarket trading to $5.42. The share price has declined by 30% over the last year.
“We closed the year on a strong note thanks to the hard work and continued execution of our team as fourth quarter revenue and costs beat our expectations,” said Robin Hayes, JetBlue’s outgoing chief executive officer. He is leaving the company Feb. 12 and Joanna Geraghty, the chief operating officer, is taking his place.
“Looking ahead, I am confident that the next chapter of JetBlue, under Joanna’s leadership, will deliver a refreshed focus on our core customer, expanded opportunities for our crewmembers, and a return to JetBlue’s historical earnings power for our shareholders,” Hayes said in a statement issued early Tuesday.
“We remain intensely focused on restoring profitability, taking steps to ensure every dollar we invest is making an impact,” Chief Financial Officer Ursula Hurley said. She added the airline is considering deeper cuts of costs it can control
“2024 is an important year of change for JetBlue and we are taking aggressive action, including launching $300 million of revenue initiatives, to return to profitability and deliver value for our shareholders,” Geraghty said.
JetBlue has agreed to help build a new terminal at Fort Lauderdale-Hollywood, and recently launched service from the airport to Tallahassee.
For the third year running, The Wall Street Journal recently ranked the airline as the worst of the nine major U.S. carriers. The paper’s analysis of federal and other data placed JetBlue last in on-time arrivals, cancellations, delays of more than 45 minutes and tarmac delays.
The airline blamed bad weather at its JFK International Airport operation in New York and poor air traffic control along many of its routes.
Delta Air Lines finished atop the survey while Spirit ranked seventh.
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