JetBlue Airways (NASDAQ:JBLU) stock plummeted 5.02% in pre-market trading on Wednesday after the airline provided disappointing guidance for the second quarter, citing weakening demand trends and an uncertain economic backdrop.

The carrier expects unit revenue to decline between 7.5% and 3.5% year-over-year in Q2, a significant deterioration from the 1.3% growth seen in Q1. JetBlue also forecast capacity to be down 3.5% to 0.5% compared to last year, as it cuts flights to match lower demand.

"We continue to see the current macro backdrop negatively impact consumer sentiment and travel demand, especially during our peak travel periods," said Martin St. George, JetBlue's President, during the earnings call. He noted particular weakness in domestic markets and off-peak travel times.

The gloomy outlook prompted JP Morgan to cut its price target on JetBlue stock to $5 from $6, adding further pressure on shares. The airline's management withdrew full-year guidance due to the macroeconomic uncertainty, signaling a lack of visibility into future performance.

Despite the challenges, JetBlue executives emphasized progress on their "JetForward" strategic plan, including improvements in on-time performance and customer satisfaction scores. However, they acknowledged that some revenue initiatives may ramp up slower than expected due to capacity reductions.

"While our strategy did contemplate a stable economic backdrop, the current macro environment does not change our ultimate goal, breakeven operating profitability and eventually a return to sustained profitability," said CEO Joanna Geraghty. The company is taking steps to reduce costs and preserve cash in response to the weaker demand environment.