Executive Summary and Strategic Update [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Performance%20Highlights) JetBlue reported a **positive operating margin** for Q2 2025, exceeding revenue and cost guidance, driven by improving demand and operational execution - Delivered a **positive operating margin** for the quarter, exceeding revenue and cost guidance ranges[1](index=1&type=chunk) - Operational investments led to significant reliability improvements, with on-time performance up **three points year-over-year**, and customer satisfaction and Net Promoter Score increasing considerably[3](index=3&type=chunk) Q2 2025 Key Financial Highlights | Metric | Value | YoY Change | | :-------------------------------- | :---------------- | :--------- | | GAAP Net Loss | $(74) million | NM | | Non-GAAP Adjusted Net Loss | $(58) million | NM | | System Capacity | -1.5% | -1.5% | | Operating Revenue | $2.4 billion | -3.0% | | Operating Expense | $2.4 billion | -0.9% | | Operating Margin | 0.3% | -2.0 pts | | Adjusted Operating Margin | 1.3% | -1.1 pts | | Average Fuel Price | $2.40 per gallon | -16.2% | | Unit Revenue (YoY) | -1.5% | -1.5% | | CASM ex-Fuel (YoY) | +6.0% | +6.0% | [JetForward Transformation Plan Progress](index=1&type=section&id=JetForward%20Transformation%20Plan%20Progress) JetBlue's JetForward plan gained momentum, delivering **$90 million** incremental EBIT in 1H 2025, with **$180 million** cumulative gains - JetForward delivered **$90 million** incremental EBIT in the first half of 2025, bringing cumulative gains to **$180 million**[5](index=5&type=chunk) - Key initiatives include Reliable & Caring Service, Best East Coast Leisure Network, Products & Perks Customers Value (**$35 million** in 1H25, **$125 million** cumulatively), and A Secure Financial Future, focusing on AI adoption and fuel reduction[5](index=5&type=chunk)[8](index=8&type=chunk) - Definitive agreements were executed to sell the remaining Embraer E190 fleet and two upcoming Airbus A321neo XLR deliveries, simplifying the fleet[8](index=8&type=chunk) [Blue Sky Collaboration with United Airlines](index=1&type=section&id=Blue%20Sky%20Collaboration%20with%20United%20Airlines) The Blue Sky collaboration with United Airlines enhances customer choice and loyalty, transitioning United's non-flight ancillaries to Paisly - The Blue Sky collaboration with United Airlines offers customers access to hundreds of new flights and destinations via a traditional interline agreement[4](index=4&type=chunk) - United will transition its distribution of non-flight ancillaries to JetBlue's Paisly subsidiary, boosting Paisly's high-margin growth[4](index=4&type=chunk) - Blue Sky is projected to contribute an additional **$50 million** in incremental EBIT, accelerating JetForward's total program range to **$850 million to $950 million** in EBIT benefit by the end of 2027[5](index=5&type=chunk) Second Quarter 2025 Financial Results [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) JetBlue reported a **GAAP net loss of $74 million** in Q2 2025, with total operating revenues decreasing by **3.0%** and expenses by **0.9%** Consolidated Statements of Operations (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change (%) | | :-------------------------------- | :----------------- | :----------------- | :------------- | | Total Operating Revenues | $2,356 | $2,428 | (3.0) | | Passenger Revenue | $2,179 | $2,265 | (3.8) | | Other Revenue | $177 | $163 | 8.1 | | Total Operating Expenses | $2,350 | $2,371 | (0.9) | | Aircraft Fuel | $504 | $626 | (19.4) | | Salaries, Wages and Benefits | $852 | $784 | 8.5 | | Maintenance, Materials and Repairs | $198 | $150 | 31.9 | | Operating Income (Loss) | $6 | $57 | (88.7) | | Operating Margin | 0.3% | 2.3% | (2.0) pts. | | Net Income (Loss) | $(74) | $25 | NM | | Basic EPS | $(0.21) | $0.07 | - | Consolidated Statements of Operations (1H 2025 vs. 1H 2024) | Metric | 1H 2025 (Millions) | 1H 2024 (Millions) | YoY Change (%) | | :-------------------------------- | :----------------- | :----------------- | :------------- | | Total Operating Revenues | $4,496 | $4,637 | (3.0) | | Total Operating Expenses | $4,664 | $5,300 | (12.0) | | Operating Income (Loss) | $(168) | $(663) | (74.6) | | Operating Margin | (3.7)% | (14.3)% | 10.6 pts. | | Net Income (Loss) | $(282) | $(691) | (59.1) | | Basic EPS | $(0.79) | $(2.02) | - | [Comparative Operating Statistics](index=8&type=section&id=Comparative%20Operating%20Statistics) Q2 2025 operational metrics show **1.5%** ASM decrease, **2.1 percentage point** load factor decline, and **6.0%** CASM ex-Fuel increase Comparative Operating Statistics (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :------ | :------ | :--------- | | Revenue Passengers (thousands) | 9,973 | 10,375 | (3.9)% | | Available Seat Miles (ASMs) (millions) | 16,634 | 16,887 | (1.5)% | | Load Factor | 81.9% | 84.0% | (2.1) pts. | | Average Fare | $218.52 | $218.27 | 0.1% | | Passenger Revenue per ASM (cents) | 13.10 | 13.41 | (2.3)% | | Operating Revenue per ASM (RASM) (cents) | 14.17 | 14.38 | (1.5)% | | Operating Expense per ASM (cents) | 14.13 | 14.04 | 0.6% | | Operating Expense per ASM, excluding fuel (CASM ex-Fuel) (cents) | 10.86 | 10.24 | 6.0% | | Average Fuel Cost per Gallon | $2.40 | $2.87 | (16.2)% | | Fuel Efficiency (ASMs per fuel gallon) | 79 | 77 | 2.4% | | Average number of full-time equivalent crewmembers | 18,956 | 20,097 | (5.7)% | [Selected Consolidated Balance Sheet Data](index=9&type=section&id=Selected%20Consolidated%20Balance%20Sheet%20Data) As of June 30, 2025, cash and cash equivalents increased to **$2,135 million**, while investment securities decreased and equity declined Selected Consolidated Balance Sheet Data (June 30, 2025 vs. Dec 31, 2024) | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :---------------------- | :----------------------- | :--------------------------- | | Cash and Cash Equivalents | $2,135 | $1,921 | | Total Investment Securities | $1,227 | $2,025 | | Total Assets | $16,903 | $16,841 | | Total Debt | $8,451 | $8,539 | | Stockholders' Equity | $2,408 | $2,641 | [Selected Consolidated Cash Flows Data](index=9&type=section&id=Selected%20Consolidated%20Cash%20Flows%20Data) Capital expenditures and pre-delivery deposits for flight equipment decreased to **$496 million** for 1H 2025, reflecting capital efficiency Selected Consolidated Cash Flows Data (1H 2025 vs. 1H 2024) | Metric | 1H 2025 (Millions) | 1H 2024 (Millions) | | :------------------------------------------------- | :----------------- | :----------------- | | Capital Expenditures and Pre-Delivery Deposits for Flight Equipment | $(496) | $(917) | Outlook and Future Strategy [Q3 and Full Year 2025 Guidance](index=3&type=section&id=Q3%20and%20Full%20Year%202025%20Guidance) JetBlue anticipates improving demand, reinstating full-year unit cost guidance despite lower capacity; Q3 ASMs projected **-1.0% to 2.0%** - JetBlue is optimistic about the demand environment improving, with close-in strength extending into July[9](index=9&type=chunk) - Full-year unit cost guidance is reinstated despite capacity being **1.5 points** lower than initial projections[9](index=9&type=chunk) Third Quarter and Full Year 2025 Outlook | Metric | Estimated 3Q 2025 | Estimated FY 2025 | | :-------------------------------- | :------------------ | :------------------ | | Available Seat Miles ("ASMs") Year-Over-Year | (1.0%) - 2.0% | (2.5%) - (0.5%) | | RASM Year-Over-Year

Financial Performance - JetBlue Airways is expected to report a quarterly loss of 33 cents per share for Q2, compared to a profit of 8 cents per share in the same period last year [1] - Projected quarterly revenue is $2.29 billion, down from $2.43 billion a year earlier [1] Cost-Saving Measures - The company is implementing additional cost-saving measures due to weaker travel demand, making it unlikely to achieve break-even margins this year [2] Stock Performance and Analyst Ratings - JetBlue Airways shares fell 0.5% to close at $4.36 [2] - UBS analyst Thomas Wadewitz has a Sell rating with a price target of $3 [8] - Raymond James analyst Savanthi Syth downgraded the stock from Outperform to Market Perform [8] - Citigroup analyst Stephen Trent maintained a Neutral rating and raised the price target from $4.25 to $5 [8] - Barclays analyst Brandon Oglenski maintained an Underweight rating and reduced the price target from $7 to $4 [8] - Susquehanna analyst Christopher Stathoulopoulos maintained a Neutral rating and cut the price target from $6 to $4 [8]

Core Insights - JetBlue Airways is expected to report earnings on July 29, 2025, with a historical trend of negative one-day returns post-earnings announcements, occurring in 80% of cases, with a median decline of -5.9% [2][3][7] - Analysts forecast a loss of $0.33 per share on revenues of $2.29 billion for the upcoming quarter, a decline from the previous year's earnings of $0.08 per share on revenues of $2.43 billion [3][4] - JetBlue's current market capitalization is approximately $1.5 billion, with total revenue of $9.2 billion over the past twelve months, but it has incurred operational losses of $110 million and a net loss of $287 million [4] Historical Performance - Over the last five years, JetBlue has recorded 20 earnings data points, with only 4 positive one-day returns, indicating a 20% success rate, which drops to 17% when considering the last three years [7] - The median of the 4 positive returns is 2.7%, while the median of the 16 negative returns is -5.9% [7] Trading Strategies - Traders may consider pre-earnings positioning based on historical probabilities, while post-earnings analysis can help in understanding the relationship between immediate and medium-term returns [6][8] - Correlation between 1D, 5D, and 21D returns can guide trading strategies, particularly if strong correlations are identified [8][9]

Group 1 - JetBlue was identified as a potential investment opportunity in late 2023 when airline stocks were at low prices following the COVID rebound [1] - The airline sector was viewed as a contrarian bet due to Wall Street's expectations of solid profits [1]

美交通部长：升级空中交通管制系统还差190亿美元 智通财经7月17日电，据央视新闻报道，美国交通部长达菲表示，特朗普政府还需要190亿美元，才能全 面升级空中交通管制系统。此前5月21日，美国多家航空公司的首席执行官发布联名信，信中说，美国 的空中交通管制系统正在"辜负美国民众"。他们敦促国会迅速采取行动，批准资金对空管系统进行现代 化改造。这封联名信由美国航空公司、美国联合航空公司、达美航空、西南航空、捷蓝航空、阿拉斯加 航空、阿特拉斯航空以及联邦快递和联合包裹运送服务公司联合签署。信中表示，美国联邦航空管理局 的技术已经"严重过时"。夏季旅游季即将开始，他们呼吁尽快采取行动。 ...

Group 1 - Airline investors are optimistic following strong quarterly results from Delta Air Lines, leading to a 10% increase in JetBlue Airways shares [1][4] - Delta Air Lines exceeded expectations and reinstated full-year guidance, indicating strong demand in the airline industry despite previous concerns about inflation and tariffs [3][5] - Investors are speculating that strong demand for Delta will also positively impact the rest of the airline industry, including JetBlue, which has not yet reported its results [4] Group 2 - There are significant differences between Delta and JetBlue, with Delta being part of the "big four" airlines that control about 80% of the domestic market, while JetBlue is a smaller player [5] - JetBlue has been less profitable than Delta in recent quarters and is facing a considerable debt burden, which raises concerns about its financial health [5][6] - Despite the recent rally, JetBlue shares are down nearly 40% year to date, indicating ongoing challenges for the company [6]

Market Movements - US stock index futures are all down ahead of the market opening, with Dow futures down 0.10%, S&P 500 futures down 0.06%, and Nasdaq futures unchanged [1] - European indices show positive movement, with Germany's DAX up 0.22%, UK's FTSE 100 up 1.17%, France's CAC40 up 0.64%, and the Euro Stoxx 50 up 0.27% [2][3] - WTI crude oil is down 0.58% at $67.98 per barrel, while Brent crude oil is down 0.48% at $69.85 per barrel [3][4] Federal Reserve Insights - The Federal Reserve's meeting minutes reveal policy disagreements, with some members supporting a potential rate cut as early as July, while others prefer to hold rates steady for the year [5] - Citigroup maintains its expectation for a possible rate cut in September, citing a current unemployment rate of 4.1% as making a July cut "extremely unlikely" [5] Economic Risks - Goldman Sachs warns that the optimistic "Goldilocks" scenario for US stocks faces three key risks: stagflation, turmoil in long-term bond markets, and a sharp decline in the dollar [6] - The firm suggests that leading indicators and business cycle scores indicate a slowdown in US economic growth, advising a more cautious approach to equities [6] Regional Bank Stocks - US regional bank stocks have seen a strong rebound but may face short-term pullback risks as earnings season approaches [7] - The SPDR S&P Regional Banking ETF (KRE) has risen over 8% in the past month, nearly double the S&P 500's gain, but analysts suggest caution ahead of earnings reports [7] Copper Market Reaction - President Trump's announcement of a 50% tariff on imported copper has shocked the market, with JPMorgan and Morgan Stanley predicting further decoupling of US copper prices from international prices [8] - JPMorgan expects LME copper prices to decline to $9,100 per ton by Q3 2025, while Morgan Stanley anticipates a significant premium for COMEX prices over LME prices [8] Company Earnings - Delta Air Lines reported Q2 earnings that exceeded expectations, with adjusted revenue of $15.51 billion and EPS of $2.10, leading to a positive outlook for the full year [9] - Tesla plans to expand its Robotaxi service to the San Francisco Bay Area within one to two months, pending regulatory approval, highlighting its commitment to commercializing autonomous driving technology [10] - TSMC's Q2 revenue grew by 39%, driven by sustained demand for AI chips, exceeding market expectations [11] Amazon's Prime Day Performance - Amazon's extended Prime Day promotion faced challenges, with sales on the first day down 41% year-over-year, raising concerns about consumer behavior during longer promotional periods [12] Acquisition News - WK Kellogg is reportedly receiving a $3 billion acquisition offer from Ferrero, with a significant short position in WK Kellogg's stock potentially amplifying price reactions [13]

Industry Competition - United Airlines and JetBlue challenged assertions that their proposed partnership should be prohibited due to stifling competition [1] - The airlines refuted claims that the partnership would lead to increased fares [1]

Core Insights - JetBlue Airways Corporation (JBLU) is enhancing its position in the airline industry through product renovations and expanding its cruise portfolio via its subsidiary Paisly, LLC [1][10] - Paisly has added four cruise line partners: Holland America Line, Cunard, Virgin Voyages, and Oceania Cruises, which broadens its existing cruise offerings and enhances loyalty-integrated experiences for airline partners' customers [2][10] Expansion of Cruise Offerings - The expansion of Paisly's cruise offerings allows JetBlue Vacations to be the first brand to integrate this expanded inventory, facilitating access to a wider customer base [3][10] - United Airlines is set to benefit from this expanded cruise portfolio through a collaboration with Paisly, expected to start in summer 2026 [3] Market Potential - The global cruise passenger market is projected to grow from 34.6 million in 2024 to 42 million by 2028, indicating cruising as one of the fastest-growing sectors in leisure travel [4] - Paisly plans to add a new cruise partner each month to further expand its direct inventory [4] Strategic Vision - Jamie Perry, president of Paisly, emphasized the need for disruption in the cruising category, stating that the expanded offerings will enable airlines to provide smarter, simpler, and more rewarding customer experiences [5] - The initiatives by Paisly are expected to enhance investor confidence and strengthen JBLU's position as a key player in the tourism sector [5]

Core Insights - JetBlue Airways Corporation (JBLU) is enhancing its position in the airline industry by improving its baggage experience through a new mobile app feature and Apple AirTag integration [1][10] Baggage Tracking Features - The new baggage tracking feature in the JetBlue Mobile App provides real-time updates on checked luggage, enhancing customer experience and offering peace of mind [2][10] - Customers can share the location of their checked bags with JetBlue's Baggage Service team if their luggage is delayed or misplaced, facilitating easier recovery [3][10] Customer-Centric Technology - These improvements reflect JBLU's ongoing investment in customer-friendly technology aimed at providing a hassle-free travel experience [3] - Carol Clements, JetBlue's Chief Digital and Technology Officer, emphasized the company's commitment to delivering convenient travel experiences as part of its JetForward strategy [5] Baggage Handling Performance - JetBlue consistently ranks among the top U.S. carriers for baggage handling, with less than 1% of customers experiencing delays, and ranked second among all U.S. carriers in 2024 [4]