JetBlue Airways (NASDAQ:JBLU) fell over 16% on Tuesday after warning revenue was set to fall further than expected over the full year due to the likes of election uncertainty.
Revenue was guided to drop by between 4% and 5% for the year, with a drop of 3% to 7% expected over the fourth quarter, JetBlue said in earnings on Tuesday.
Consensus estimates compiled by LSEG had been for a 3.6% drop in revenue over the year.
JetBlue president Marty St. George noted the decline over the coming months was set to reflect the impact of Hurricane Milton earlier in October and a drop in demand ahead of November’s presidential election.
Figures for the third quarter also showed JetBlue remained in loss-making territory, though operating losses narrowed from $156 million to $38 million
Revenue remained flat year on year at $2.2 billion, while adjusted losses per share of $0.16 were smaller than expectations for $0.25.
“Our number one goal remains returning to operating profitability, and growing our unit revenue is imperative to reach operating profitability,” George added.
“As underlying trends from the third quarter have broadly continued into the fourth quarter so far, we expect unit revenue growth to remain positive and sequentially consistent.”
Shares fell by 16.1% to $6.14 following the results.