JetBlue Airways (JBLU) stock took a hit on Monday morning, plunging 5.62% in the early trading session. This significant drop came after the airline reported its fourth-quarter 2024 earnings, which included a narrower-than-expected loss but raised concerns over its cost outlook for the upcoming year.

Despite beating analysts' estimates with a loss of 21 cents per share, compared to the expected 30 cents, JetBlue's shares declined as investors reacted to the company's guidance for non-fuel unit costs. The airline expects these costs to increase in the range of 5-7% from the previous year's levels, a figure that appears to have disappointed investors.

The airline industry has been grappling with high operational costs, particularly in the labor sector, which has weighed on profitability margins. While JetBlue's fourth-quarter revenue of $2.28 billion exceeded expectations, it decreased by 2.1% year-over-year, further highlighting the challenges faced by the company.