JetBlue(JBLU) - 2025 Q2 - Quarterly Results

Executive Summary and Strategic Update Q2 2025 Performance Highlights 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] - 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] 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 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] - 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][8] - Definitive agreements were executed to sell the remaining Embraer E190 fleet and two upcoming Airbus A321neo XLR deliveries, simplifying the fleet[8] Blue Sky Collaboration with United Airlines 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] - United will transition its distribution of non-flight ancillaries to JetBlue's Paisly subsidiary, boosting Paisly's high-margin growth[4] - 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] Second Quarter 2025 Financial Results Consolidated Statements of Operations 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 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 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 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 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] - Full-year unit cost guidance is reinstated despite capacity being 1.5 points lower than initial projections[9] 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