JetBlue announced 1st Q2025 results, ended the quarter with $3.8b. in liquidity

“During the first quarter, we delivered a strong operation and efficiently executed on costs. JetForward is ramping well, and we are focused on successfully managing what we can control,” said Joanna Geraghty, JetBlue’s chief executive officer. “We also acted urgently to manage near-term revenue uncertainty. We were the first carrier to make meaningful capacity adjustments, swiftly moving to better match supply with demand. As we continue to monitor the evolving macro backdrop, we are evaluating all levers available to us to boost profitability and preserve cash, including additional capacity reductions, targeted cost savings, and further evaluation of our fleet retirement schedule. Given the macroeconomic uncertainty, we are not re-affirming our prior full-year guidance.”

“Operational improvements made over the quarter are especially notable, as our investments in reliability, tied to our JetForward strategy, have driven year-over-year improvement in on-time performance over the last three quarters and resulted in significant increases in customer satisfaction and cost savings,” said Geraghty. “From our impressive operation over the quarter to the early success of our products and perks initiatives, such as EvenMore and our premium co-branded card, we are seeing encouraging signs that JetForward is working and that it is the right plan. Thank you to our crewmembers for your commitment to running a safe and reliable operation and to your commitment to the JetForward strategy. Your dedication to offering the caring service JetBlue is known for makes a significant impact on the customer experience and is a core reason new and loyal customers keep coming back to fly JetBlue.”

Prudent Balance Sheet Decisions Provide Solid Runway for JetForward

JetBlue remains well positioned to manage through a range of economic outcomes. Over the past 16 months, the company took prudent decisions to raise capital ($3.2 billion strategic financing in 2024) and manage upcoming capital expenditures (~$3 billion aircraft deferral in 2024) to provide JetBlue the runway to execute JetForward. In addition to current liquidity levels, the company has over $5 billion in unencumbered assets, consisting primarily of aircraft, engines, and slots, gates, and routes.

“We’ve already taken a number of steps to build a more resilient financial foundation, and we continue to evaluate all avenues to improve our financial results,” said Ursula Hurley, JetBlue’s chief financial officer. “We remain confident JetForward will drive enduring structural changes on our path to sustained profitability, and we saw encouraging progress in the first quarter.”

Encouraging JetForward Progress in the First Quarter

• Reliable & Caring Service
  • Reliability investments drove a four point year-over-year improvement in A14 as well as a double-digit improvement in Net Promoter Score, marking consecutive quarterly gains for both metrics.
  • Reliability initiatives from JetForward drove improved operational performance alongside cost savings worth ~0.75pts of CASM ex-fuel⁽¹⁾in 1Q.
• Best East Coast Leisure Network
  • Efforts to build depth where customers know and love the JetBlue brand are showing strong early progress, and new BlueCities in the northeast are demonstrating margin strength relative to the system.
• Products & Perks Customers Value
  • Launched further enhancements to our EvenMore product by adding additional amenities such as dedicated overhead bin space, free alcohol and a premium snack.
  • New products & perks, including preferred seating, continue to perform in-line with or ahead of expectations.
  • Premium co-branded credit card launched in January and quickly met sign-up targets, a testament to the strength of our brand and loyalty program.
• A Secure Financial Future
  • Continue to make progress on JetForward cost program executing technology driven efficiencies in our operational and commercial functions, enhancing our planning and sourcing strategies, and unlocking savings from cross-functional fuel burn optimization efforts.

First Quarter 2025 Financial Results

• Net loss for the first quarter of 2025 under U.S. Generally Accepted Accounting Principles (“GAAP”) of $208 million or $(0.59) per share. Non-GAAP adjusted net loss for the first quarter of 2025 of $209 million or $(0.59) per share.
• First quarter 2025 system capacity decreased by 4.3% year-over-year.
• Operating revenue of $2.1 billion for the first quarter of 2025, a decrease of 3.1% year-over-year.
• Operating expense of $2.3 billion for the first quarter of 2025, a decrease of 21.0% year-over-year.
• Operating expense of $2.3 billion in the first quarter of 2025, decreased 2.2%⁽¹⁾ year-over-year, excluding special items in 2024. There were no special items in the first quarter of 2025.
• Operating expense per available seat mile (“CASM”) for the first quarter of 2025 decreased 17.4% year-over-year.
• Operating expense per available seat mile, excluding fuel, other non-airline operating expenses, and special items (“CASM ex-Fuel”)⁽¹⁾for the first quarter of 2025 increased 8.3%⁽¹⁾ year-over-year.
• Operating margin of (8.2)% for the first quarter of 2025.
• Average fuel price in the first quarter of 2025 of $2.57 per gallon.

First Quarter 2025 Key Highlights

• Delivered strong operational performance with a completion factor of 98.6%.
• First quarter year-over-year unit revenue increased by 1.3%, within our initial guidance range.
• Premium, international and loyalty segments, all core to JetForward strategy, continue to provide strength and support revenue resilience:
  • Premium RASM outperformed core RASM by high single digits.
  • Transatlantic RASM grew 28% year-over-year on 25% fewer ASMs, evidence of continuing market maturation and successful efforts to better seasonalize flying.
  • Loyalty revenue up 9% year-over-year, with co-brand spend up 7%.
• First quarter year-over-year ex-fuel unit costs increased by 8.3%, beating the midpoint of our guidance range, with cost savings from operational reliability improvements offsetting pressure from close-in capacity pulls.
• Ended the quarter with $3.8 billion in liquidity, excluding our undrawn $600 million revolving credit facility, representing 41% of our trailing twelve month revenue.
• Grew JetBlue Travel Products extensive product offerings, introducing stand-alone cruise bookings and trip weather protection.
• Unveiled plans for a refreshed Terminal 5 at New York’s John F. Kennedy International Airport including 40+ new concessions and redesigned communal spaces, a commitment to the city and region as New York’s Hometown Airline.
• JetBlue, along with its fuel partners, marked the first-ever regular supply of sustainable aviation fuel for commercial air travel in the region at New York’s John F. Kennedy International Airport.

Outlook

“In the first quarter we saw booking strength from January deteriorate into February and worsen into March,” said Marty St. George, JetBlue’s president. “We expect softened demand for off-peak travel to continue into the second quarter, where the booking curve is more exposed to macro uncertainty and deteriorating consumer confidence. That said, we are committed to our JetForward plan and are encouraged by the resiliency of premium, international, and loyalty revenues – core components of our long-term strategy.”