• Revenue: Unit revenue increased 1.3% year-over-year, within initial guidance of down 0.5% to up 3.5%.
• Capacity (ASMs): Down 4.3% year-over-year, within revised guidance of down 5% to down 4%.
• Transatlantic RASM: Up 28% year-over-year with 25% fewer ASMs.
• Premium RASM: Outperformed core RASM by high-single digits.
• Loyalty Revenue: Grew by 9% year-over-year.
• Liquidity: Total liquidity at the end of 2024 was $3.9 billion, representing 42% of trailing 12-month revenue.
• Unencumbered Asset Base: Valued at over $5 billion.
• Capital Expenditures (CapEx): Expected to be about $1.3 billion for 2025.
• CASM ex-fuel: Year-over-year growth of 8.3%, better than initial guidance midpoint of 9%.
• Fuel Price per Gallon: Forecasted to be $2.25 to $2.40 for the second quarter.

• Warning! GuruFocus has detected 4 Warning Signs with JBLU.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• JetBlue Airways Corp (NASDAQ:JBLU) reported that their RASM for the first quarter met initial guidance, indicating effective revenue management despite a challenging environment.
• The company achieved a significant improvement in Net Promoter Score (NPS), marking the fourth consecutive quarter of year-over-year growth, which suggests strong customer satisfaction and brand loyalty.
• JetBlue Airways Corp (NASDAQ:JBLU) has a robust liquidity position, with $3.9 billion in total liquidity at the end of 2024, representing 42% of trailing 12-month revenue, the strongest liquidity ratio in the industry.
• The company is making progress on its cost transformation program, expecting savings to ramp during the second half of the year, which should help mitigate potential upward pressure on unit costs.
• JetBlue Airways Corp (NASDAQ:JBLU) is seeing encouraging signs that the premium segment is holding up better in the current environment, supporting the evolution of their product offering as part of their JetForward strategy.

Negative Points

• JetBlue Airways Corp (NASDAQ:JBLU) experienced a deterioration in booking trends from February to March, leading to an unpredictable outlook for the second half of the year.
• The company is not reaffirming its full-year guidance due to macroeconomic uncertainty, indicating a lack of visibility into future performance.
• JetBlue Airways Corp (NASDAQ:JBLU) is facing challenges with weakened consumer sentiment and an uncertain economic backdrop, which are impacting travel demand.
• The company has had to make significant capacity adjustments, pulling 2.5 points of trough capacity from March and making early changes to April, reflecting a reactive approach to demand fluctuations.
• JetBlue Airways Corp (NASDAQ:JBLU) is dealing with a challenging macro environment that is negatively impacting consumer sentiment and travel demand, especially during peak travel periods.

Q & A Highlights

Q: When did the change in booking patterns start, and what adjustments have you made to revenue management? How would you characterize current booking patterns, and what are your assumptions for the rest of the quarter, particularly June? A: Martin St. George, President: We noticed a slowdown in bookings starting in January, which led us to guide conservatively. We have since seen a couple of step-downs, prompting aggressive capacity cuts. Currently, bookings have plateaued for about three to four weeks, and our second-quarter guidance reflects current trends without assuming recovery or further decline.

Q: Are there specific geographic areas, like New York and Boston, affecting your performance, or is it more about competitive capacity? A: Martin St. George, President: Data indicates a Northeast-led slowdown in demand, with the coasts being more impacted than other regions. This has influenced our capacity strategy, leading to aggressive reductions in trough capacity, particularly in the Northeast.

Q: Can you provide a range for second-half capacity outcomes, assuming the current environment continues? A: Martin St. George, President: We have several scenarios but are not providing specific guidance for the year. We expect capacity to be measurably down from initial expectations, but we remain optimistic that the situation is transitory and will adjust based on demand.

Q: What are the potential benefits of the upcoming domestic airline partnership, and when can we expect to see these benefits? A: Martin St. George, President: The partnership will offer a broader network for earning and redeeming TrueBlue points, enhancing customer utility. We expect to announce the partnership this quarter, and while JetForward includes a number for partnerships, this new partnership could exceed those expectations.

Q: How are you addressing the Pratt & Whitney engine issues, and what is the status of compensation discussions? A: Ursula Hurley, CFO: We currently have 10 aircraft grounded, an improvement from previous expectations. We are seeing operational improvements from Pratt & Whitney, and while compensation discussions are ongoing, we have not included any assumptions in our 2025 guidance.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.