JetBlue Airways Reports Fourth-Quarter 2025 Financial Results and Full-Year Performance, Provides 2026 Outlook
JetBlue Airways Corporation (NASDAQ: JBLU) today released its financial results for the fourth quarter of 2025, highlighting continued progress under its strategic transformation program, JetForward. Despite macroeconomic challenges that affected overall profitability, the airline reported strong operational momentum, measurable improvements in customer satisfaction, and ongoing cost and capacity management initiatives that position JetBlue for growth and profitability in 2026.
CEO Commentary on 2025 Performance
“2025 marked a meaningful step forward for JetBlue,” said Joanna Geraghty, JetBlue’s Chief Executive Officer. “In the first full year of JetForward, we achieved tangible results in improving operational reliability, enhancing the customer experience, and advancing our strategic priorities, despite a challenging macroeconomic and operational environment. While external uncertainties impeded a return to profitability this year, the program’s proof points demonstrate that JetForward is working and setting the stage for improved financial performance in 2026. I want to extend my sincere gratitude to our 23,000 crewmembers—your dedication to serving our customers and supporting one another through unexpected challenges has been truly inspiring.”
Marty St. George, JetBlue’s President, added, “We observed strong underlying demand during the fourth quarter, and I am encouraged to see this momentum carry into early 2026. A constructive macroeconomic backdrop and industry capacity environment provide optimism that our performance will continue to improve. Exciting initiatives are rolling out this year, including critical milestones for our Blue Sky collaboration with United, the opening of our Boston lounge, and the expansion of domestic first-class service.”
JetForward Program: Delivering Measurable Results
JetForward, JetBlue’s strategic transformation initiative, delivered $305 million in incremental EBIT contribution in 2025, exceeding the $290 million target for its first full year of implementation. The program continues to make progress across its four priority pillars:
- Reliable & Caring Service
- All key reliability metrics improved year-over-year for the second consecutive year.
- On-time departures increased nearly two percentage points.
- Net Promoter Score (NPS) rose by eight points year-over-year and 17 points over the past two years.
- Best East Coast Leisure Network
- Strategic redeployments and capacity optimization contributed to stronger-than-expected performance in Fort Lauderdale, reestablishing JetBlue as the largest carrier at the airport.
- Products & Perks Customers Value
- Preferred seating and the EvenMore® program exceeded performance expectations.
- Premium co-branded credit card sign-ups surpassed first-year targets.
- JetBlue opened its first airport lounge, BlueHouse, at JFK Terminal 5.
- A Secure Financial Future
- Enhanced tools and AI-driven systems improved planning, disruption management, and self-service capabilities.
- Operational efficiencies were achieved in support center fixed costs.
- Fuel processes were modernized, generating cost savings through technology and process improvements.
- Capital expenditures for 2026–2029 were strategically reduced by approximately $3 billion since 2023.
JetForward is projected to contribute an additional $310 million in incremental EBIT in 2026, maintaining the airline on track to achieve $850–$950 million in incremental EBIT by 2027.
Fourth-Quarter 2025 Financial Results
- Capacity: Decreased 1.6% year-over-year.
- Operating Revenue: $2.2 billion, a 1.5% decline from Q4 2024.
- Revenue per Available Seat Mile (RASM): Increased 0.2% year-over-year, exceeding guidance (expected decline of 4.0% to flat) due to strong underlying demand and higher-than-expected loyalty and ancillary revenues.
- Operating Expense per Available Seat Mile (CASM): Rose 5.4% year-over-year.
- CASM Ex-Fuel: Increased 6.7% year-over-year, reflecting higher non-fuel operating costs.
- Average Fuel Price: $2.51 per gallon.
- Capital Expenditures: $345 million, including predelivery deposits.
- Liquidity: Ended the quarter with $2.5 billion, representing ~27% of trailing twelve-month revenue (excluding the $600 million revolving credit facility).
Full-Year 2025 Financial Results
- Capacity: Decreased 1.6% year-over-year.
- Operating Revenue: $9.1 billion, down 2.3% from 2024.
- RASM: Decreased 0.7% year-over-year.
- CASM: Decreased 3.8% year-over-year.
- CASM Ex-Fuel: Increased 6.2% year-over-year, consistent with previous guidance of 5–7% growth.
- Average Fuel Price: $2.49 per gallon.
- Capital Expenditures: $1.1 billion, including predelivery deposits.
Commercial Highlights for 2025
JetBlue made several strategic advances in 2025 that strengthened its position in the U.S. airline market:
- Blue Sky Collaboration with United Airlines: Reciprocal loyalty accrual and redemption were launched, enhancing the value of TrueBlue® points and offering more benefits to members.
- TrueBlue® Program Recognition: According to third-party data, TrueBlue® was the highest-ranked airline loyalty program for customer satisfaction.
- Customer Satisfaction Accolades: JetBlue was recognized as the top airline for first/business class satisfaction by J.D. Power.
- Fleet Modernization: Definitive agreements were executed to sell the remaining Embraer E190 fleet and two Airbus A321neo XLR deliveries, simplifying the fleet and reducing operational complexity.
- Enhanced Connectivity: Partnered with Amazon Leo to deliver faster and more reliable onboard Wi-Fi, with rollout expected to begin in 2027.
- Technology Investments: Assets from JetBlue Technology Ventures were sold to SKY Leasing, retaining upside potential while reducing costs and maintaining access to innovative companies.
Ursula Hurley, JetBlue’s Chief Financial Officer, stated, “In 2025, our team focused on the elements we could control—adjusting capacity, managing costs, and executing JetForward despite a challenging backdrop. Delivering meaningful incremental JetForward EBIT while keeping unit costs within expectations demonstrates the discipline and operational rigor we are building across the business.”
Guidance for 2026
First Quarter 2026:
- Available Seat Miles (ASMs): Growth of 0.5% to 3.5% year-over-year.
- RASM: 0.0% to 4.0% year-over-year.
- CASM Ex-Fuel: Increase of 3.5% to 5.5% year-over-year.
- Average Fuel Price: $2.27–$2.42 per gallon.
- Capital Expenditures: Approximately $200 million.
Full Year 2026:
- ASMs: 2.5% to 4.5% growth year-over-year.
- RASM: 2.0% to 5.0% growth year-over-year.
- CASM Ex-Fuel: Increase of 1.0% to 3.0% year-over-year.
- Average Fuel Price: $2.17–$2.37 per gallon.
- Adjusted Operating Margin: Expected to achieve breakeven or better.
- Interest Expense: Approximately $580 million.
- Capital Expenditures: Approximately $900 million.
Guidance assumes mid-single-digit aircraft on ground due to General Electric GTF engine issues and excludes potential impacts from Winter Storm Fern.
JetBlue’s fourth-quarter and full-year 2025 results reflect a company in the midst of transformation. Operational reliability, customer experience improvements, and strategic capacity management under JetForward have positioned the airline for a return to profitability in 2026. The airline is entering 2026 with strong liquidity, disciplined cost control, ongoing fleet modernization, and key partnerships such as Blue Sky with United, all supporting its objective of sustainable growth and enhanced shareholder value.
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