JetBlue Airways (JBLU, Financial) shares slid about 25 percent and dwindled over the past 12 months after the airline provided an uninspiring financial outlook that shook investors about high costs and lackluster revenue growth.

The New York-based carrier projected its unit costs, excluding fuel, to climb as much as 7% year-over-year in 2025, with a sharper increase of up to 10% expected in the first quarter. First-quarter revenue estimates are falling between a 0.5 percent decline and a 3.5 percent rise from the prior year, short of growth predictions from Delta Air Lines (DAL, Financial) and United Airlines (UAL, Financial), which see stronger pricing power.

JetBlue is executing a cost-cut strategy of cutting unprofitable routes, deferring aircraft deliveries and pricing premium seats. It was also reported by CNBC that the airline has already offered senior pilots voluntary early retirement packages as part of the restructuring.

Regulatory roadblocks have prevented the company's growth ambitions. In 2024, a federal judge banned its planned acquisition of Spirit Airlines and it filed for Chapter 11 bankruptcy protection. JetBlue lost an antitrust case a year ago over its regional partnership with American Airlines (AAL, Financial).