JetBlue Airways (JBLU) is expected to slightly exceed its Q2 guidance, but the outlook for the rest of the year remains uncertain, UBS said in a note Monday.

The airline gave a cautious revenue forecast for Q2, expecting a 7.5% year-over-year decline. However, a smaller decline of around 6% is expected amid gains in New York-area airports and a strong Memorial Day weekend travel, the note said.

Furthermore, JetBlue likely ran a more efficient operation with fewer weather delays, keeping costs in check, resulting in an estimated 6.5% increase in unit costs, UBS said. The airline is not expected to return to profitability soon, and the company may not see a profit until sometime next year.

JetBlue's Q3 performance could be weaker due to tougher year-ago comparisons and fewer one-time benefits like the Easter holiday shift, which could result in a 5% drop in revenue per seat mile, according to the note.

Costs may rise less in Q3 than in Q2, but the company is still expected to post a quarterly loss of 48 cents per share, UBS noted.

For full-year 2025, analysts see continued losses, with a projected full-year loss of $1.83 per share versus the consensus of $1.76 amid weak holiday demand in Q4, according to UBS.

UBS initiated coverage for JetBlue with a sell rating and $3 price target.

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