JetBlue stock take a nosedive as the management gives a cautious 2025 outlook. Rising costs and intense competition could be a major concern. (Photo by Kevin Carter/Getty Images)Getty ImagesDespite posting smaller-than-expected loss for 3Q 2025, JetBlue Airways Corporation (NASDAQ: JBLU) stock took a nosedive of about 12% over a cautious 2025 outlook and concerns over higher costs and intense competition. Though the operating revenue came in line with the analyst expectations at $2.32 billion, it was down ...

Financial Performance & Outlook - 3Q25 performance met or exceeded guidance midpoints[7] - CASM ex-fuel up 3.7% year-over-year[9] - Adjusted operating margin three points better than implied by July guidance ranges[9] - The company expects capital expenditures to trend at or below $1 billion annually beginning in 2026[35] - Interest expense is estimated at approximately $590 million for the full year 2025, reduced by about $10 million[36] Revenue & Demand - 3Q2025 ASMs increased by 0.9% compared to 3Q2024, while guidance was between 0.0% and 1.0%[19] - 3Q unit revenues exceeded midpoint of revised guidance[22] - TrueBlue revenue was up 12% year-over-year[25] Strategic Initiatives - The company plans to launch 17 new routes and increase frequency on 12 high-demand markets from Fort Lauderdale in 2025[12] - Implementation of Blue Sky with United Airlines is on track, with reciprocal loyalty point accrual & redemption launched[9] - A220s represent approximately 25% unit cost improvement versus E190s[33]

Morgan Stanley Laguna Conference September 11, 2025 1 1 Safe Harbor This Presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historica ...

Financial Performance & Outlook - JetBlue delivered a positive operating margin in 2Q25, meeting or exceeding guidance ranges[6] - JetForward program is increasing its target by $50 million, aiming for $850-950 million in EBIT by 2027[9, 11] - Capital expenditures are expected to trend below $1 billion annually from 2026 through the end of the decade[24] Revenue & Demand - Year-over-year RASM decreased by 1.5% in 2Q25, but exceeded the guidance range[8, 15] - Revenue generated within 14 days of travel increased by 7% year-over-year[20] - 3Q25 RASM is guided to be between -6.0% and -2.0% year-over-year[16] Cost Management & Fleet - CASM ex-Fuel increased by 6.0% year-over-year in 2Q25, outperforming the better end of the guidance range[8] - The company expects AOGs (Aircraft On Ground) to average below 10 for 2025, compared to mid-to-high teens previously[26] - JetBlue is pausing four of 10 planned A320 restyles and selling two XLRs to avoid an orphan fleet[25] Strategic Initiatives - Blue Sky collaboration with United Airlines is expected to add $50 million in incremental EBIT to JetForward[8, 13] - The company realized a total of $90 million incremental EBIT in 1H25 on top of the $90 million EBIT captured in 2024[11]

Financial Performance & Outlook - 1Q25 capacity decreased by 4.3% YoY, at the low end of the initial guidance range, due to self-help actions to reduce trough capacity[9] - 1Q25 RASM increased by 1.3% YoY, reflecting softer off-peak revenue trends[9] - 1Q25 CASM ex-Fuel increased by 8.3% YoY, beating the initial midpoint due to cost savings from operational execution[9] - The company is targeting $800-900 million in incremental EBIT through 2027 via JetForward initiatives[10] - The company ended 1Q with $3.8 billion in liquidity, supported by a strategic debt raise in 2024[29] Strategic Initiatives & Adjustments - JetForward initiatives are on track, with most achieving 1Q expectations, focusing on network adjustments and reliability investments[15] - The company is taking action to balance supply with demand, including capacity reductions in 1H25[21, 23] - The company deferred approximately $3.0 billion in capex in 2024, shifting 44 Airbus A321neo deliveries to 2030 and beyond[29] Guidance - 2Q25 ASM guidance is projected to decrease by 3.5% to 0.5% YoY[19] - 2Q25 RASM guidance is projected to decrease by 7.5% to 3.5% YoY[19] - 2025 capital expenditures are expected to be approximately $1.3 billion[36]