JetBlue joins US airlines in withdrawing forecasts over trade war

By Rajesh Kumar Singh and Shivansh Tiwary

April 29 (Reuters) - JetBlue Airways JBLU.O pulled its 2025 forecast on Tuesday, the latest U.S. carrier to scrap its outlook, as the economic uncertainty caused by President Donald Trump's trade war has made it harder for companies to predict the impact on their business.

Delta DAL.N, American AAL.O, Alaska ALK.N, Southwest LUV.N and Frontier Airlines ULCC.O have all withdrawn their financial forecasts, while United Airlines UAL.O has given two different outlooks - a highly unusual move.

Travel is a discretionary item for many consumers. With the trade war raising the prospect of slower economic growth and higher inflation, both tourists and corporations are sitting tight, leading to a pullback in travel spending.

JetBlue said booking trends began deteriorating in February and worsened further in March. The economic backdrop is still having a negative impact on consumer sentiment and travel demand, especially during off-peak travel periods, it added.

As a result, the New York-based airline said it expects its unit revenue - a proxy for pricing power - to decline as much as 7.5% from a year ago in the June quarter.

"As we look to the second half of the year, the outlook remains unpredictable," JetBlue CEO Joanna Geraghty told analysts on an earnings call.

It is slashing capacity, or seats on planes, in response to weak demand. The airline now expects its second-quarter capacity to be nearly five percentage points lower than its initial plans at the beginning of the year.

The trade war has not only taken a toll on travel spending, but is also driving up the costs for aircraft and their parts. The U.S. aviation industry is lobbying the White House for exemptions from tariffs.

JetBlue said it doesn't expect a "meaningful" tariff impact this year as most of its planes, scheduled for deliveries, are assembled in the United States.

The airline, however, has three jets that are coming from Germany. The company said it is exploring all of its options on how to mitigate the impact. The tariffs also have implications for its spare parts, and aircraft and engine repair costs.

JetBlue said it could consider tapping financial markets to fund its remaining aircraft deliveries this year if the broader economy deteriorates further.

The company also said it is closer to announcing a partnership with a domestic airline with a larger network.

JetBlue reported a smaller-than-expected adjusted loss of 59 cents per share for the quarter ended March 31, compared with analysts' expectations of 61 cents according to data compiled by LSEG.