Jetblue Airways (NasdaqGS:JBLU) Q3 2025 Earnings Call October 28, 2025 10:00 AM ET Company ParticipantsKoosh Patel - Director of Investor RelationsUrsula Hurley - CFOJoanna Geraghty - CEO and DirectotMarty St. George - PresidentJoanna Geraghty - CEOConference Call ParticipantsCatherine O'Brien - Lead U.S. Airline and Aircraft Lessor Equity Research AnalystRavi Shanker - AnalystScott Group - Managing Director and Senior AnalystTom Fitzgerald - AnalystDan McKenzie - AnalystDuane Fenningworth - AnalystSavi Syt ...

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]

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 ...