JetBlue Airways Corp. (NASDAQ:JBLU) shares slipped Tuesday after posting mixed first-quarter 2025 results.

The airline reported an adjusted loss of 59 cents per share, narrower than the expected 61 cents loss but wider than last year’s 43 cents loss. Revenue of $2.14 billion was down 3.1% year over year, just missing the $2.15 billion consensus.

In the first quarter of 2025, JetBlue’s capacity declined 4.3% year over year, while operating expenses fell 21% year over year to $2.3 billion.

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Operating revenue per ASM increased by 1.3% YoY, Operating expense per available seat mile (CASM) declined 17.4% YoY, CASM ex-fuel rose 8.3%, and average fuel price was $2.57 per gallon.

JetBlue’s premium, international, and loyalty segments remain strong under its JetForward strategy. Premium RASM outpaced core RASM, transatlantic RASM rose 28% despite reduced capacity, and loyalty revenue grew 9% year-over-year.

JetBlue ended the quarter with $3.8 billion in liquidity—41% of trailing 12-month revenue, excluding an undrawn $600 million credit facility.

The operating margin for the quarter improved 24.4 points to (8.2)%, and the adjusted operating margin fell to (8.2%) from (7.1)% a year ago.

JetBlue ended the quarter with $2.97 billion in cash and equivalents.

“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,” added Marty.

JetBlue advanced its JetForward strategy in the first quarter with improved reliability, driving a four-point A14 gain and double-digit NPS growth, saving ~0.75 pts in CASM ex-fuel. Northeast BlueCities showed strong margins, while new product perks and a premium co-branded credit card exceeded expectations. Cost initiatives continued, focused on tech efficiencies and fuel optimization.

Guidance Q2: JetBlue anticipates that in the second quarter of 2025, available seat miles (ASM) are expected to decline (3.5%) – (0.5%) year over year. RASM is predicted to be down (7.5%) – (3.5%) for the second quarter.

CASM ex-fuel is expected to grow 6.5% – 8.5%, and Fuel Price per Gallon is estimated to be between $2.25 – $2.40 for the quarter.

JetBlue anticipates a CapEx of $400 million in Q2 and roughly $1.30 billion in 2025

“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,” commented Joanna Geraghty, JetBlue’s chief executive officer.

Price Action: JBLU shares are trading lower by 3.32% at $3.94 at the last check on Tuesday.

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