Financial Data and Key Metrics Changes - The company ended the quarter with an operating margin 3 points better than July guidance, supported by a more reliable operation and effective cost control [22][24] - Unit revenues ended the quarter down 2.7% year over year, just above the midpoint of revised guidance [18] - Fuel price came in at $2.49, in the lower half of the revised guidance range, with fourth quarter fuel expected to be between $2.33 and $2.48 [23] Business Line Data and Key Metrics Changes - Premium products continued to outperform core offerings, with premium rising growth up six points relative to core [19] - The TrueBlue loyalty program saw a 12% revenue increase, indicating improved customer satisfaction and network recalibration [19] - The company retired its remaining Embraer E190 aircraft, completing the transition to an all-Airbus fleet [10] Market Data and Key Metrics Changes - The demand environment showed signs of recovery, characterized by strong closing bookings and healthy demand for peak travel [18] - The company is seeing robust demand for premium products, with expectations for continued strength in peak periods [20] - The company anticipates a healthy booking curve normalization into the fourth quarter [20] Company Strategy and Development Direction - The company is focused on expanding its presence in Fort Lauderdale, launching 17 new routes and increasing frequency on 12 high-demand markets [13] - Jet Forward initiatives are expected to generate a cumulative $290 million of incremental EBIT this year, with a commitment to reach $850 to $950 million by 2027 [26] - The company plans to enhance its premium offerings, including the launch of domestic first class and airport lounges [17][80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the overall health of bookings and the resilience of the premium leisure segment [11] - The company has not seen any material impact from the government shutdown, indicating a stable operational environment [9][49] - Management is confident in the trajectory towards profitability, emphasizing the importance of macroeconomic improvements alongside Jet Forward initiatives [36][70] Other Important Information - The company ended the quarter with $2.9 billion in cash and marketable investments, representing 32% of trailing 12 months' revenue [24][25] - The company is on track to open its first airport lounge at JFK by the end of the year, with a Boston lounge set to open in 2026 [17] Q&A Session Summary Question: Impact of competitor's Chapter 11 filing on Fort Lauderdale operations - Management noted that the competitor's pull-downs in Fort Lauderdale have created opportunities for JetBlue to increase flights and improve service [30][32] Question: Government shutdown's impact on revenue - Management clarified that the government shutdown has not had a meaningful impact on operations or revenue [49] Question: Incremental contribution from Jet Forward in 2026 and 2027 - Management indicated that Jet Forward initiatives are expected to contribute significantly to earnings, with a focus on premium products and operational improvements [41][43] Question: Liquidity and financing needs over the next 12 to 18 months - Management stated that a modest amount of capital will be needed for new aircraft deliveries and to address convertible debt maturity, with a focus on cost-effective financing options [44][45] Question: Update on grounded aircraft and forecast for next year - Management reported improvements in GTF challenges, with fewer aircraft expected to be grounded in 2026, allowing for growth [63] Question: Timing for domestic first class implementation - Management confirmed that by the end of 2026, approximately 25% of the non-Mint fleet will be retrofitted for domestic first class [65] Question: Profit decline ex Jet Forward and future improvements - Management acknowledged the challenges but expressed confidence in the momentum from Jet Forward initiatives and operational improvements [68][70]

Financial Data and Key Metrics Changes - The company ended the quarter with an operating margin 3 points better than the July guidance ranges, supported by a more reliable operation and effective cost control [24] - Unit revenues for the third quarter were down 2.7% year over year, just above the midpoint of the revised guidance range [19] - Fuel price for the third quarter was $2.49, with fourth quarter expectations between $2.33 and $2.48 [25] Business Line Data and Key Metrics Changes - Premium products continued to outperform core offerings, with premium rising growth up six points relative to core [20] - The TrueBlue loyalty program saw a 12% revenue increase, indicating improved customer satisfaction and network recalibration [20] - The company plans to launch 17 new routes and increase frequency on 12 high-demand markets, representing a 35% year-over-year increase for the IATA winter season [13] Market Data and Key Metrics Changes - The demand environment showed signs of recovery, characterized by strong closing bookings and healthy demand for peak travel [19] - The company is seeing robust demand for premium products, with expectations for continued strength in peak periods [21] - The impact of Hurricane Melissa on operations in Jamaica is still being assessed, with Jamaica representing about 2.6% of the company's capacity in the fourth quarter [23] Company Strategy and Development Direction - The company is focused on enhancing its presence in Fort Lauderdale, aiming to strengthen its position in this key market [10] - Jet Forward plan is on track to generate a cumulative $290 million of incremental EBIT this year, with a focus on operational reliability and customer satisfaction [12][27] - The company is implementing Blue Sky collaboration with United Airlines, expected to enhance customer loyalty and generate significant earnings momentum [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fourth quarter, citing strong demand for peak period travel and resilience in the premium leisure segment [11] - The company is confident in its ability to restore profitability and is focused on executing its Jet Forward initiatives [12][28] - Management acknowledged the challenges posed by external factors but emphasized the positive trajectory of customer satisfaction and operational improvements [6][12] Other Important Information - The company retired its remaining Embraer E190 aircraft, completing the transition to an all-Airbus fleet [9] - The first airport lounge at JFK is set to open by the end of this year, with a Boston lounge planned for 2026 [18] - The company is on track to launch domestic first class in 2026, with 25% of the retrofit expected to be complete by the end of that year [18] Q&A Session Summary Question: Impact of competitor's Chapter 11 filing on Fort Lauderdale operations - Management noted that the competitor's pull-downs in Fort Lauderdale have created opportunities for JetBlue to increase flights and improve connections [31][33] Question: Government shutdown's impact on revenue - Management indicated that the government shutdown has not had a material impact on operations or demand [45] Question: Incremental contribution from Jet Forward in 2026 - Management stated that Jet Forward is expected to contribute significantly to earnings, with a focus on premium initiatives and operational improvements [40][41] Question: Liquidity and financing needs over the next 12 to 18 months - Management confirmed a modest capital raise is anticipated to support new aircraft deliveries and a convertible debt maturity [42] Question: Reliability and time on wing for A220 fleet - Management acknowledged reliability challenges with the A220 but noted improvements are expected as aircraft return from AOG [77]

Financial Performance & Targets - JetBlue successfully delivered $180 million of incremental EBIT benefit from JetForward through the first half of 2025 and is on track to achieve $290 million by year-end[4] - The company is targeting $850-950 million in incremental EBIT by 2027 through JetForward initiatives[5] - JetBlue realized $25 million in savings in the first half of 2025 from cost transformation initiatives[5] - Announcement of Blue Sky and Paisly upsized JetForward, adding $50 million incremental EBIT to initial target range[5] Network & Product Strategy - JetBlue has redeployed over 20% of its network since the beginning of 2024, reinvesting in Northeast, Florida, and Puerto Rico franchises and redeploying to high-performing leisure & VFR markets[5] - JetBlue anticipates offering its largest ever schedule with 113 peak departures to 49 destinations this winter from Fort Lauderdale, up 35% year-over-year[7] Operational Improvements - JetBlue initiated a multi-year investment to improve on-time performance and was recognized by the WSJ as the most improved in their '24 rankings[5] - Net Promoter Score was up double digits year-over-year in the first half of 2025[5] Capital Expenditure & Financing - JetBlue deferred approximately $3 billion in capital expenditures into the 2030s and executed over $3 billion in financing[5]