Jetblue Airways (JBLU) FY Conference June 04, 2025 10:15 AM ET Speaker0 All right, kick it off. Good morning, everybody. We're really excited to be here today webcasting live with the team from JetBlue Airways. We have Marty St. George, President, Ursula Hurley, Chief Financial Officer, and Jamie Perry, President of Paisley, formerly known as JetBlue Travel Products. Before we get into the Q and A, would you guys like to make any opening remarks? Speaker1 Yeah, first of all, thank you all for coming, good t ...

MileagePlus customers can earn and use miles on JetBlue including hundreds of flights in and out of New York City and Boston while TrueBlue members can earn and use points on United flights including to popular international destinations like Cape Town and TahitiBenefits of each airline's loyalty program like priority boarding, complimentary access to preferred and extra legroom seats, and same-day standby/switch will be available across both airlinesAirlines will also offer flights on one another's website ...

Financial Data and Key Metrics Changes - The company reported a year-over-year increase in RASM of 1.3%, which was within initial guidance, while ASMs decreased by 4.3% year-over-year [15][22] - The company ended the quarter with a strong liquidity position, representing 42% of trailing twelve-month revenue, the strongest liquidity ratio in the industry [12][30] - CASM ex-fuel grew by 8.3% year-over-year, better than the initial guidance midpoint of 9% [34][35] Business Line Data and Key Metrics Changes - The premium segment performed exceptionally well, with premium RASM, including Mint and Even More, outperforming core RASM by high single digits [18][19] - Loyalty revenues grew by 9%, supported by new partnerships and the launch of a premium co-branded credit card [19][20] - The international flying segment showed stronger performance, with Transatlantic RASM up 28% year-over-year [16] Market Data and Key Metrics Changes - The Northeast market experienced a slowdown in demand, impacting bookings more than other regions [49][50] - Domestic markets showed weakness, while international markets, particularly in Latin America, performed relatively better [16][22] - The company observed a wider spread between peak and trough unit revenues, with peak RASM up high single digits and off-peak RASM declining double digits year-over-year [22] Company Strategy and Development Direction - The company is committed to its long-term strategy, Jet Forward, which aims to drive transformational change and achieve breakeven operating profitability [9][10] - The company is adjusting capacity to better match supply with demand, having made significant capacity cuts in response to changing booking patterns [10][14] - The focus remains on enhancing customer loyalty and brand strength, with initiatives under Jet Forward showing early signs of success [19][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macroeconomic environment remains unpredictable, leading to a cautious approach in reaffirming full-year guidance [6][7] - The company is leveraging past experiences from the 2008 financial crisis and the COVID-19 pandemic to navigate current challenges [7][10] - Management expressed optimism about the resilience of the premium segment and loyalty program, which are expected to provide stability amid economic uncertainty [24][26] Other Important Information - The company has deferred $3 billion in capital expenditures, pushing out A321neo deliveries to the 2030s to focus on returning to profitability [12][30] - The company is actively exploring adjustments to its fleet plan to preserve cash and enhance operational flexibility [32][33] Q&A Session Summary Question: When did the change in booking patterns start and what adjustments were made? - Management noted that booking slowdowns were observed in January, leading to aggressive capacity cuts in February and March [43][45] Question: Is the slowdown in demand specific to certain geographies? - Management indicated that the Northeast region is experiencing a more pronounced slowdown compared to other areas, impacting capacity strategy [49][50] Question: Can you provide a range for second-half capacity outcomes? - Management refrained from providing specific guidance but indicated that capacity would be measurably down from initial expectations [55][56] Question: What benefits are expected from the domestic partnership? - Management highlighted that the partnership would enhance network opportunities for TrueBlue points, improving customer utility [58][59] Question: What is the status of the Pratt and Whitney compensation situation? - Management reported that there are currently 10 aircraft on the ground, with improvements noted in operational performance, but compensation discussions remain fluid [78][81] Question: Will there be new market entries this year? - Management confirmed that multiple new routes are expected to be announced later in the year [83] Question: What is the outlook for the spread between premium and core RASM? - Management expects continued growth in premium RASM, with hopes that core RASM will also improve, maintaining the spread [87][88] Question: How is VFR demand performing in Latin America? - Management reported that VFR traffic remains stable, with no significant drops observed in key markets [93]

Core Insights - JetBlue Airways has been ranked number one in customer satisfaction for first and business class [1] - The airline is preparing to announce a partnership with a larger U.S. airline, potentially United Airlines, to enhance its competitive position against major carriers like Delta and United [1][3] - JetBlue's previous acquisition of Spirit Airlines was blocked by the Justice Department, and its partnership with American Airlines in the Northeast ended after an antitrust lawsuit [2] Group 1 - JetBlue's president indicated that the upcoming partnership would allow customers to earn and redeem loyalty points on a larger network [3] - The partnership aims to benefit customers traveling to destinations not currently served by JetBlue, enhancing their loyalty program [4] - The airline has been in discussions with multiple carriers this year and expects to finalize an announcement within the current quarter [3]

Jetblue Airways (JBLU) Q1 2025 Earnings Call April 29, 2025 10:00 AM ET Company Participants Koosh Patel - Director of Investor RelationsJoanna Geraghty - CEOMarty George - PresidentUrsula Hurley - CFODuane Pfennigwerth - Senior MDSavanthi Syth - MD - Airlines & Advance Air MobilityMichael Linenberg - Managing DirectorCatherine O'Brien - Vice PresidentRavi Shanker - Managing Director Conference Call Participants Jamie Baker - AnalystThomas Fitzgerald - AnalystDaniel McKenzie - Equity Research AnalystAndrew ...