JetBlue Airways Corp. (JBLU) stock plummeted 14.09% in pre-market trading on Tuesday, after reporting a wider-than-expected loss for the fourth quarter of 2024 and providing a disappointing outlook for the first quarter and full year 2025.

In the fourth quarter, JetBlue reported a net loss of $44 million, or $0.13 per share, compared to a loss of $104 million, or $0.31 per share, in the same period last year. While the loss narrowed year-over-year, it was still wider than analysts' expectations. The airline's revenue for the quarter rose 2.1% to $2.28 billion, driven by strong close-in demand during the holiday season, but higher costs weighed on profitability.

Looking ahead to the first quarter of 2025, JetBlue expects revenue per available seat mile (RASM) to increase by just 0.5% to 3.5%, significantly lower than analysts' expectations of a 4.9% rise. The company also forecasts capacity to decline by 2% to 5%, while costs are expected to rise, with CASM ex-fuel anticipated to increase by 8% to 10%.

For the full year 2025, JetBlue projects a modest profit margin between 0% to 1%, with revenue growth of 3% to 6% and CASM ex-fuel increasing by 5% to 7%. The airline cited higher salaries, wages, benefits, and maintenance costs as contributing factors to the increased expenses.

JetBlue's CEO, Joanna Geraghty, acknowledged the challenges the airline faced in 2024 but expressed confidence in the company's JetForward strategy to improve profitability through initiatives such as network optimization, product enhancements, and cost control measures. However, investors seem unconvinced, as the weak guidance overshadowed the airline's fourth-quarter results and future outlook.