JetBlue Q1 2025 Earnings Summary

Revenue and Profitability
- Operating revenue was $2.14 billion, down 3.1% year-over-year.
- Operating loss improved significantly to $(174) million compared to $(719) million a year ago.
- Net loss was $(208) million or $(0.59) per share; non-GAAP adjusted net loss was $(209) million or $(0.59) per share.
- Operating margin improved to (8.2)% from (32.6)% a year earlier.
- Total operating expenses decreased 21.0% year-over-year to $2.31 billion, including no special items this quarter.
- CASM ex-fuel (non-GAAP) increased 8.3% year-over-year.

Operational Metrics
- Revenue passenger miles (RPMs) declined 3.1%; available seat miles (ASMs) fell 4.3%.
- Load factor improved to 80.7% from 79.7%.
- Average fuel price was $2.57 per gallon, down 13.5% year-over-year.
- Completion factor was 98.6%, showing strong operational reliability.
- Average fare declined slightly by 0.8% to $212.58.

Liquidity and Balance Sheet
- Ended the quarter with $3.8 billion in liquidity, excluding a $600 million undrawn credit facility.
- Total assets stood at $17.1 billion; total debt was $8.47 billion.
- Stockholders' equity was $2.45 billion.

JetForward Strategic Progress
- Operational reliability improvements delivered a 4-point year-over-year on-time performance improvement.
- New product initiatives like enhanced EvenMore® seating and premium credit cards are performing ahead of expectations.
- International, premium, and loyalty revenue streams continue to show strength, aligning with JetForward goals.
- Continued investment in JetBlue Travel Products with the launch of new offerings like cruise bookings.

Outlook
- JetBlue did **not** reaffirm full-year 2025 guidance due to macro uncertainty.
- For Q2 2025, ASMs are expected to decline (3.5%) to (0.5%) year-over-year.
- RASM expected to decline (7.5%) to (3.5%) year-over-year.
- CASM ex-fuel is expected to rise 6.5%–8.5% year-over-year in Q2.
- Capital expenditures forecast at approximately $1.3 billion for full-year 2025.

Management Commentary
CEO Joanna Geraghty emphasized proactive capacity management and cost control despite worsening demand trends. JetBlue remains committed to executing the JetForward strategy to drive structural improvements and ensure long-term profitability.

JetBlue Airways provided an operational and financial update for the first quarter of 2025, highlighting challenges related to weather disruptions and mixed macroeconomic demand. The company faced more weather-related issues in February compared to the previous year, which affected flight completion rates. However, JetBlue's focus on operational reliability helped mitigate significant disruption costs.

The airline noted softness in demand during off-peak periods, leading to targeted capacity reductions in March and April. Despite these challenges, demand for peak travel periods remains strong, and JetBlue remains optimistic about the progress of its JetForward initiatives.

Updated guidance for the first quarter of 2025 includes:

- Capacity (Available Seat Miles - ASMs) expected to decline between 4.0% and 5.0% year-over-year.
- Operating revenue per ASM (RASM) guidance remains unchanged at (-0.5%) to 3.5% year-over-year.
- CASM Ex-Fuel, a key cost metric, remains unchanged with an expected increase of 8.0% to 10.0% year-over-year.
- Fuel price per gallon is revised downward to $2.55 - $2.65, compared to the previous estimate of $2.65 - $2.80.
- Capital expenditures are expected to be around $215 million, down from the previously estimated $270 million.

JetBlue also reaffirmed its focus on cost management and efficiency improvements under the JetForward strategy. The company’s updated investor presentation on its business strategy has been furnished as Exhibit 99.1.

The airline acknowledged ongoing risks, including macroeconomic uncertainty, competitive pressures, and potential supply chain disruptions, but remains confident in its long-term growth strategy.

JetBlue Airways Corporation has released its financial results for the fourth quarter of 2024, marking progress amid challenges and highlighting the company's strategic shift under the JetForward initiative. Key details include:

JetBlue achieved a fourth-quarter operating margin of 0.7% and an adjusted margin of 0.8%, alongside $395 million in 2024 revenue initiatives, surpassing its $300 million target. The JetForward program, which contributed $90 million in EBIT in 2024, is on track to deliver $800-$900 million through 2027. The airline showed operational improvements, such as better on-time performance and customer satisfaction, and was ranked sixth in the Wall Street Journal’s 2024 Airline Rankings, up from last place in 2023.

While the quarter ended with a GAAP net loss of $44 million, JetBlue maintained a strong cash position, with $3.9 billion in unrestricted cash and investments. Capacity decreased by 5.1% year-over-year, and revenue dipped 2.1%, but the company showed improvements in CASM and reliability metrics. Looking ahead, JetBlue expects to reach positive operating margins in 2025, driven by cost control, revenue initiatives, and enhancements in customer service, such as the introduction of domestic first-class cabins in 2026.

The earnings call and further details are accessible via JetBlue's investor relations website.

BofA downgrades JBLU from hold to underperform