JetBlue Airways Q4 Earnings: Smaller Than Expected Loss, Sees Q1 Capacity Decline, Positive Operating Margin In 2025

On Tuesday, JetBlue Airways Corporation JBLU reported an adjusted loss per share of 21 cents, beating the consensus loss of 31 cents, compared to a 19-cent loss reported a year ago.

The air carrier reported operating revenue of $2.28 billion, down 2.1% year over year and beating the consensus of $2.25 billion. In the fourth quarter of 2024, capacity decreased by 5.1% year-over-year.

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Fourth quarter year-over-year operating revenue per ASM increased by 3.2%, driven mainly by strong close-in demand during the November and December holiday peaks.

"2024 was a year of rapid change for JetBlue as we introduced our refocused strategy, JetForward, setting us on a path to get back to profitability," said Joanna Geraghty, JetBlue's CEO.

"We finished the year strong, exceeding both revenue and cost expectations with operational reliability delivering for our customers throughout the holiday season.

"With a healthy revenue backdrop, continued cost control and incremental earnings from JetForward, we believe we are well-positioned to deliver on our goal of achieving a positive operating margin for the full year," Geraghty added.

Revenue initiatives in 2024 achieved a top-line benefit of $395 million, exceeding the $300 million target. This contributed $90 million of EBIT to the JetForward program in 2024, originally forecasted to be realized in 2025.

Operating expense per available seat mile (CASM) for the fourth quarter of 2024 decreased 0.4% year-over-year. Operating expenses per available seat mile, excluding fuel, other non-airline operating expenses, and special items (CASM ex-Fuel) increased 11.0% year-over-year.

The average fuel price in the fourth quarter of 2024 was $2.47 per gallon, including hedges. The operating margin for the quarter improved to 0.7% and adjusted operating margin by 2.4 points year-over-year to 0.8%.

JetBlue ended the fourth quarter with $3.9 billion in unrestricted cash, and equivalents.

Guidance: JetBlue anticipates that in the first quarter of 2025, available seat miles (ASM) will decline (5.0%) – (2.0%) year over year, with approximately being flat in 2025.

RASM growth is anticipated to be (0.5%)-3.5% for the first quarter of 2025 and 3.0%-6.0% for 2025.

JetBlue anticipates a Capex of $270 million in the first quarter and roughly $1.40 billion in 2025

"We expect to reach positive operating margin in 2025 by building on the progress we made in 2024, delivering on our revenue and reliability initiatives as part of JetForward, and continuing our cost control efforts," said Ursula Hurley, JetBlue's CFO.

Price Action: At last check on Tuesday, JBLU stock was down 8.78% to $7.38 during the premarket session.

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