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JetBlue Shares Hit 12-Year Low

JetBlue’s third-quarter results missed expectations due to travel delays during the summer.

Shares of JetBlue hit a nearly 12-year low Tuesday after the airline forecast a wider-than-expected loss in the current quarter and said it was cutting back on some flights.

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The weak outlook comes after JetBlue’s third-quarter results missed Wall Street expectations because of significant delays during the summer travel season.

“The sheer magnitude of the air traffic control and weather-related delays has been staggering,” Chief Financial Officer Ursula Hurley said.

The company said U.S. flying capacity is outstripping demand during off-peak periods. This trend has prompted JetBlue to reduce some schedules during slower periods, while adding to its international itineraries.

Americans’ appetite for travel appears to be waning after nearly two years of bingeing on flights. Analysts have said airlines may have overdone it in adding U.S. flights this year. Many travelers seized the chance to go abroad this summer, leaving less appetite for domestic trips.

JetBlue shares fell 12% in afternoon trading to $3.70. The stock earlier touched a low of $3.42, its worst intraday price since November 2011.

Revenue fell 8% to $2.35 billion, short of the $2.38 billion expected by analysts, according to FactSet.

Image: JetBlue