JetBlue Airways (NASDAQ:JBLU) executives highlighted improving operational performance, stronger demand trends, and a path back to break-even operating profitability in 2026 during the company’s fourth-quarter 2025 earnings call. Management also reiterated the growing role of its “Jet Forward” transformation plan, while acknowledging that 2025 results were pressured by macro uncertainty and a series of external disruptions.
Operational gains and customer metrics improved in 2025
CEO Joanna Geraghty said 2025 marked the first full calendar year of JetBlue’s Jet Forward transformation, with operational reliability serving as a key proof point. She said the carrier beat all of its on-time performance targets in 2025, improved each reliability metric versus the prior year, and narrowed the gap to competitors. Those improvements followed what she described as an equally strong 2024, also with on-time targets achieved.
Premium, loyalty, and lounges featured prominently
President Marty St. George said fourth-quarter unit revenue (RASM) increased 0.2% year over year, finishing more than two points above the guidance midpoint. He attributed the outperformance primarily to demand strength and revenue streams such as loyalty and ancillary products, adding that early first-quarter booking trends have carried forward.
St. George said premium revenue continued to be a driver, with premium RASM outperforming core RASM by 13 points in the quarter. He cited investments in Mint, Even More, loyalty, lounges, and the planned domestic first-class product. He also said JetBlue plans to refresh Mint’s in-flight food menu later in 2026.
On loyalty, St. George said loyalty revenue grew 8% for the full year despite a 1.6% decline in capacity, and now represents more than 13% of total revenue, up from 11% in 2023. He also described acceleration in co-brand credit card performance, including double-digit spend growth and more than 30% growth in new account acquisitions in the fourth quarter.
JetBlue’s first lounge, BlueHouse at JFK, has been open for more than a month, management said. St. George reported lounge NPS in the “mid-80s” and said the lounge is helping increase premium credit card acquisition rates. Executives also discussed the planned Boston lounge, clarifying during Q&A that it is expected to open later in 2026, and said the company is evaluating whether a lounge in Fort Lauderdale could make sense, though space constraints could limit options.
Network: Fort Lauderdale expansion and Blue Sky collaboration
St. George said JetBlue added significant close-in capacity to Fort Lauderdale in the fourth quarter, announcing more than 20 new nonstop destinations and increased frequency on other routes. He said the ramp is materializing faster than expected. While JetBlue had initially expected a 1-point RASM headwind from the close-in growth, St. George said the impact was closer to 0.5 point, reflecting customer response.
He described Fort Lauderdale as a premium leisure market and said JetBlue is offering up to 26 daily “Mint flights” touching the airport this winter, which he said gives JetBlue more domestic lie-flat seats than any other carrier in Florida. He also said Fort Lauderdale provides a strategic connection point between JetBlue’s Northeast presence and its Latin America and Caribbean network.
During Q&A, St. George said JetBlue is building more of a “bank structure” in Fort Lauderdale to support connectivity, though he said the company does not intend to replicate a traditional legacy hub-and-spoke model. He added that gate availability has improved after capacity reductions from Spirit in the market, allowing JetBlue to move quickly on an expansion it had long sought.
Management also discussed the “Blue Sky” collaboration with United. St. George said cross-selling interline flights on each other’s websites is expected to activate “very soon,” followed later by mutual elite loyalty benefits. Through the second quarter, JetBlue also expects to begin selling United’s non-air ancillary products through its Paisly subsidiary, starting with car rentals and later expanding to hotels, cruises, vacation packages, and travel insurance, with a goal of offering all ancillary products by year-end.
Jet Forward financial contribution and 2026 outlook
Geraghty said Jet Forward initiatives delivered $305 million of incremental EBIT in 2025, slightly better than initial expectations. However, she said macro uncertainty pressured demand and weighed on results versus the company’s initial 2025 operating margin guidance of 0% to 1%. JetBlue estimated that uncertainty represented more than four points of headwind to operating margin, resulting in an adjusted operating margin of negative 3.7% for the year.
Looking ahead, Geraghty said JetBlue expects $310 million of incremental EBIT from Jet Forward in 2026, bringing the total to $615 million, and keeping the company on track for $850 million to $950 million of total incremental EBIT by full-year 2027.
For full-year 2026, management’s operating margin outlook is “break-even or better,” based on:
- Capacity growth of 2.5% to 4.5% (with Geraghty citing a 3.5-point assumption in the company’s high-level framework)
- Unit revenue growth of 2% to 5% (with a midpoint framework of roughly 3.5 points of improvement)
- Non-fuel unit cost growth (CASM ex-fuel) of 1% to 3% (with a 2% assumption in the high-level framework)
For the first quarter, JetBlue guided to capacity growth of 0.5% to 3.5% and unit revenue growth ranging from flat to up 4% year over year. Management said the early-January closure of Caribbean airspace and lingering demand impacts are expected to be a headwind to RASM of less than one point in the quarter, and that this impact is included in guidance.
Executives noted Winter Storm Fern led to more than 1,100 flight cancellations and that guidance excludes its impact. Geraghty said the storm occurred during a seasonal trough period and that the company does not currently expect the storm to be material to achieving full-year guidance.
Costs, fuel, and balance sheet priorities
CFO Ursula Hurley said fourth-quarter CASM ex-fuel rose 6.7%, citing disruptions including a government shutdown, an Airbus Airworthiness Directive, and two major weather events. She also said fuel price was a headwind in the quarter, with fuel at $2.51 versus a midpoint expectation of $2.40.
For full-year 2025, Hurley said CASM ex-fuel rose 6.2% and that JetBlue managed costs within its initial expectation range despite capacity being reduced by nearly two points versus the original plan. For 2026, the company expects CASM ex-fuel growth of 1% to 3%, with first-quarter CASM ex-fuel up 3.5% to 5.5% due largely to elevated maintenance expense, then moderating through the year.
Hurley guided to fuel prices of $2.34 in the first quarter and $2.27 for full-year 2026. She also said fuel efficiency remains a tailwind, with ASMs per gallon expected to improve about 1.5% in 2026, contributing to an approximate 5% improvement over three years, which she said would equate to about $100 million in savings in 2026.
On capital allocation, Hurley said JetBlue spent $1.1 billion in 2025 capex, primarily for 20 aircraft deliveries, and expects about $900 million in 2026 capex for 14 aircraft deliveries and the start of domestic first-class retrofits. She said the company has reduced planned 2026-2029 capital spending from $6 billion to $3 billion since Jet Forward began, and expects annual capex to remain below $1 billion through the end of the decade.
JetBlue ended the year with $2.5 billion of liquidity, excluding an undrawn $600 million revolving credit facility. Hurley said JetBlue expects to repay about $800 million of principal in 2026, including $325 million on 2021 convertible notes maturing in April. To support cash needs, the company intends to raise about $500 million in new financing, and Hurley said the related interest expense is included in the company’s $580 million gross interest expense guidance for 2026.
Management also said unencumbered assets increased to roughly $6.5 billion following updated appraisals, with Hurley attributing the increase primarily to aircraft purchased with cash in 2025 and incremental value in the loyalty program.
As JetBlue looks to the longer term, Hurley said the company believes there is a path to generating free cash flow by the end of 2027, with priorities centered on restoring sustained operating profitability first, then free cash flow, and improving balance sheet health.
About JetBlue Airways (NASDAQ:JBLU)
JetBlue Airways Corporation is a low-cost scheduled passenger airline headquartered in Long Island City, New York. Since commencing service in 2000, the carrier has built a reputation for combining competitive fares with enhanced onboard amenities, including free in-flight entertainment, complimentary snacks and beverages, and onboard Wi-Fi. JetBlue operates a single fleet type of Airbus A320 family and Embraer 190 aircraft, which supports its focus on efficiency and operational consistency.
The airline’s core offerings include economy-class travel and a premium business-class product known as Mint, which features lie-flat seats, curated culinary options and elevated service on select transcontinental and international routes.
