JetBlue shares tumble as costs push it to a loss despite profit forecast on higher fares

JetBlue Airways shares tumbled Tuesday after a surge in costs drove it to another quarterly loss just as it plans its takeover of Spirit Airlines.

The New York-based airline had a loss of $188 million in the second quarter on record revenue of close to $2.45 billion as it grappled with a nearly 35% increase in cost per available seat mile compared with three years ago. Fuel, labor and other expenses rose sharply last quarter.

Despite the loss, JetBlue said it expects to return to its first profit since the Covid pandemic began this quarter and that it would remain cautious on growth while costs surge.

JetBlue’s third-quarter capacity will likely end up being down as much as 3% compared with 2019, a sign the carrier is holding back on…