Why jblu decrease price today

JetBlue Airways (JBLU) shares experienced a significant decline of 16.87% on October 29, 2024, which can be attributed to a combination of factors:

1. Downbeat Revenue Outlook: The most significant factor contributing to the decline in JetBlue's stock price today is the company's downbeat revenue outlook for the fourth quarter and the full year 2024. Despite delivering a Q3 beat, the company forecasted a year-over-year decline in its Q4 and full-year revenue, which wiped out any goodwill from the previous quarter's results. This negative forecast was due to factors such as hurricane-related cancellations and the impact of the U.S. election, which are expected to weigh on unit revenue performance heading into 2025.
2. Hurricane and Election Impact: The disruption to travel and forward bookings from Hurricane Helene and Milton, combined with the pressure from the U.S. election, is expected to negatively impact unit revenue performance. JetBlue expects revenue to be down 7% to 3% from a year ago in the fourth quarter, with unit costs facing transitory headwinds.
3. Long-term Capacity Challenges: The carrier is facing challenges from the grounded aircraft with a Pratt & Whitney (RTX) engine, which has led to a reduction in long-term capacity. The company has deferred deliveries of 44 new jets as part of a plan to reduce capital expenditures by about $3 billion through 2029.
4. Contractual Wage Hikes and Higher Maintenance Costs: The expectation of higher maintenance costs and contractual wage hikes in the fourth quarter is expected to result in a significant increase in unit costs, with Q4 CASM ex-fuel expected to increase by 13-15%, which is a significant increase from the +7.6% in the same quarter last year.
5. Market Sentiment: The combination of these factors has created uncertainty among investors, leading to a significant sell-off in JetBlue's stock. The company's shares breached support at the 50-day and 200-day moving averages, indicating a strong bearish sentiment.

In conclusion, JetBlue's stock price decrease today can be attributed to a combination of factors including a downbeat revenue outlook, the impact of hurricanes and the U.S. election, long-term capacity challenges, higher maintenance costs, and negative market sentiment. These factors have created a challenging environment for the company, leading to a significant decline in its stock price.