JetBlue(US:JBLU)2025-10-28 11:13Financial Performance - In Q3 2025, the company reported an operating loss of $100 million, compared to a loss of $38 million in Q3 2024, primarily due to softening demand and increased operating costs [100]. - Operating revenue for Q3 2025 was $2.3 billion, a decrease of 1.8% year-over-year, while operating expenses increased by 0.8% to $2.4 billion [103]. - Passenger revenue decreased by 2.9% to $2.135 billion, driven by a 2.0% reduction in revenue passengers and a lower yield per passenger mile [117]. - The company reported a net loss of $425 million for the nine months ended September 30, 2025, an improvement from a net loss of $751 million in the same period of 2024, primarily due to a $326 million decrease in net loss year-over-year [126]. - Net loss for Q3 2025 was $143 million, compared to a net loss of $60 million in Q3 2024 [179]. - Loss per share for Q3 2025 was $0.39, compared to $0.17 in Q3 2024 [179]. - The company’s adjusted net loss for the nine months ended September 30, 2025, was $412 million, compared to an adjusted net loss of $173 million for the same period in 2024 [126]. Revenue and Passenger Metrics - Passenger revenue decreased by $234 million, or 3.6%, for the nine months ended September 30, 2025, driven by a 1.6% reduction in capacity and a 3.1% reduction in revenue passengers [127]. - Revenue passengers decreased by 2.0% to 10,381 thousand for the three months ended September 30, 2025, and by 3.1% to 29,618 thousand for the nine months ended September 30, 2025 [142]. - The average fare decreased by 0.9% to $205.67, and the load factor dropped by 1.5 percentage points to 85.1% [117]. - The average fare decreased by $1.15, or 0.5%, to $212.16 for the nine months ended September 30, 2025 [127]. Operating Expenses - Total operating expenses for the nine months ended September 30, 2025, were $7,086 million, a decrease of $616 million, or 8.0%, compared to $7,702 million in 2024 [129]. - Operating expenses for the three months ended September 30, 2025, were $2,422 million, a 0.8% increase from $2,403 million in 2024 [172]. - Operating expenses excluding fuel for the nine months ended September 30, 2025, were $5,453 million, a 4.2% increase from $5,231 million in 2024 [173]. - Total operating expenses per Available Seat Mile (CASM) for the three months ended September 30, 2025, was 14.34 cents, a slight decrease from 14.35 cents in 2024 [172]. - Total operating expenses excluding special items for the nine months ended September 30, 2025, were $7,057 million, a decrease of 0.8% from $7,112 million in the same period of 2024 [177]. Liquidity and Capital Structure - The company had $2.9 billion in liquidity as of September 30, 2025, including unrestricted cash and a $600 million undrawn line of credit [111]. - The company had unrestricted cash, cash equivalents, and short-term investments of $2.9 billion as of September 30, 2025, along with a $600 million undrawn line of credit [145]. - Working capital deficit increased to $771 million at September 30, 2025, from a working capital of $377 million at December 31, 2024 [152]. - Total contractual obligations amount to $20,742 million, with $11,613 million due thereafter [155]. Cost Management - Aircraft fuel costs decreased by $281 million, or 15.3%, for the nine months ended September 30, 2025, with the average fuel price dropping by 12.3% to $2.48 per gallon [130]. - Average fuel cost per gallon decreased by 6.8% to $2.49 for the three months ended September 30, 2025, compared to $2.67 in the same period of 2024 [142]. - A hypothetical 10% increase in aircraft fuel costs would raise fuel expenses by approximately $206 million over the next 12 months [181]. Strategic Initiatives - The JetForward strategic framework focuses on reliable service, building a leisure network, enhancing customer value, and ensuring financial security [101]. - The company plans to launch 17 new routes and add frequencies on 12 high-demand routes from Fort Lauderdale in 2025 [106]. - JetBlue became the first airline to partner with Amazon's Project Kuiper for enhanced onboard Wi-Fi, expected to be implemented in 2027 [109]. - The company retired its remaining Embraer E190 aircraft, completing its transition to an all-Airbus fleet, and sold 12 E190 airframes in Q3 2025, recording a net gain of $24 million [115]. - Committed aircraft deliveries include 92 aircraft, with 7 expected in the remainder of 2025 [162]. - The company sold 12 Embraer E190 airframes and 20 engines in Q3 2025 as part of its fleet transition plan [161]. Interest and Investment - Interest expense rose by $46 million, or 46.4%, for the three months ended September 30, 2025, primarily due to financing related to the TrueBlue program and additional finance lease obligations [125]. - Interest expense increased by $226 million, or 105.1%, for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to financing activities related to the TrueBlue program [139]. - Interest income rose by $35 million, or 51.5%, for the nine months ended September 30, 2025, driven by increased short-term investments from TrueBlue financings [139]. - The company reported a $12 million gain on investments for the nine months ended September 30, 2025, compared to a $25 million loss in the same period of 2024 [141]. Future Outlook - The company expects to average fewer than 10 aircraft groundings in 2025 due to mandated engine inspections, with a resolution anticipated by the end of 2027 [113]. - The company plans to utilize a shelf registration statement filed with the SEC to raise capital for product development and general corporate purposes [154]. - If interest rates were to increase by 100 basis points, annual interest expense would rise by approximately $17 million [182]. - If interest rates were to decrease by 100 basis points, interest income would decrease by approximately $16 million [183].