JetBlue Airways forecast higher costs and unit revenue below analysts' expectations for the first quarter on Tuesday, sending the New York-based carrier's shares down 14% in morning trade.

The airline is in the middle of a plan to reduce costs by culling unprofitable routes and drumming up revenue with higher-priced seats.

Shares of JetBlue Airways lost a quarter of their value after the company laid out tepid guidance for the first quarter, overshadowing solid results for the last three months of 2024. JetBlue is in th

Unit costs in 2025 will rise as much as 7% excluding fuel, the airline said Tuesday in a statement, outpacing analysts’ estimates on higher spending for compensation and aircraft maintenance. JetBlue shares fell as much as 18% as markets opened in New York, their biggest slump since Aug. 12.

JetBlue’s fourth-quarter results beat expectations, but the outlook for a key revenue metric was below forecasts.

JetBlue’s unit revenue guide implied deceleration year over year despite all the changes it has been making,” offered Melius Research analyst Conor Cunningham.