11:28 AM EST, 01/28/2025 (MT Newswires) -- JetBlue Airways' ( JBLU ) fourth-quarter results came in better than expected on Tuesday, while the airline said it expects operating expenses to continue growing this year.

The company projects operating expenses per available seat mile, dubbed CASM, excluding fuel to increase 8% to 10% year over year in the ongoing quarter. The metric is expected to increase by 5% to 7% in 2025, on top of 6.6% growth last year.

CASM excluding fuel rose 11% annually in the fourth quarter. JetBlue's ( JBLU ) shares plunged 25% in Tuesday trading.

Unit revenue, or revenue per available seat mile, known as RASM, is seen ranging from a 0.5% decline to a 3.5% increase in the first quarter. JetBlue ( JBLU ) expects Easter's shift into the second quarter to negatively impact its first-quarter RASM by 1.5 percentage point on a year-over-year basis, according to an investor presentation. Capacity, measured as available seat miles, or ASM, is projected to be down 2% to 5% in the current quarter.

For 2025, JetBlue ( JBLU ) projects RASM to grow between 3% to 6%. Capacity is expected to remain flat on an annual basis following a 3.5% drop in 2024.

"While this year will not come without its challenges, our strategy is in place to tackle those obstacles head-on," Chief Executive Joanna Geraghty said in a statement. "With a healthy revenue backdrop, continued cost control and incremental earnings from JetForward, we believe we are well-positioned to deliver on our goal of achieving a positive operating margin for the full year."

JetBlue's ( JBLU ) adjusted loss grew to $0.21 a share for the December quarter from a $0.19 loss a year earlier, compared with the FactSet-polled consensus for a loss of $0.29. Operating revenue fell 2.1% year over year to $2.28 billion, but was ahead of Wall Street's $2.26 billion estimate.

Capacity in the fourth quarter fell 5.1% from a year earlier, while unit revenue advanced 3.2% amid strong close-in demand during the November and December holiday peaks.

JetBlue ( JBLU ) expects issues with RTX's (RTX) Pratt & Whitney geared turbofan engines to reduce its earnings before interest and taxes by about 3 percentage points in 2025, compared to a 2.5 percentage point reduction the previous year. The airline had an average of 11 aircraft grounded in 2024 due to the issue, and expects the number to be in the mid-to-high teens in 2025.

"We expect to reach positive operating margin in 2025 by building on the progress we made in 2024, delivering on our revenue and reliability initiatives as part of JetForward, and continuing our cost control efforts," Chief Financial Officer Ursula Hurley said.

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