Why JetBlue Shares Are Falling Today
High costs caused JetBlue Airways (NASDAQ: JBLU) to report a larger-than-expected loss, and investors are rushing for the exits as a result. Shares of the airline are down more than 6% on Tuesday morning on fears that the problems that plague JetBlue will not be resolved quickly.
JetBlue lost $0.47 per share in the second quarter on revenue of $2.44 billion, falling short of analyst expectations for a $0.11-per-share loss on revenue of $2.46 billion. Revenue was up 16% compared to the same three months of 2019, prior to the pandemic, and higher than the company's initial outlook. But higher spending on fuel and workers soaked up much of that revenue growth.
More of the same is expected in the quarters to come, though JetBlue is taking steps to curtail growth and bring down expenses.
Source Fool.com
