DALLAS — JetBlue Airways (B6) reported better-than-expected third-quarter 2024 financial results, with positive advancements in its JetForward strategy aimed at boosting customer satisfaction, strengthening its East Coast leisure market, and enhancing premium travel offerings.
Other sound decisions from the New York-based airline include successfully deferring aircraft orders, adjusting its network to prioritize its core competencies, and implementing cost-cutting measures. As Brian Sumers from The Airline Observer writes, these strategies proved effective in the third quarter.
CEO Joanna Geraghty highlighted the airline’s operational resilience, noting an improved 98% completion rate despite challenges from Hurricanes Helene and Milton. This stability contributed to a double-digit increase in customer satisfaction year-over-year.
On his part, President Marty St. George emphasized demand for the airline’s services during peak periods and cited capacity adjustments and revenue growth in the Latin market as contributors to the airline’s positive revenue performance.
Strategic Enhancements Under JetForward
JetBlue’s ongoing JetForward strategy centers around operational reliability, customer-focused products, and financial stability. Notable accomplishments include:
- Enhanced Customer Experience: B6 will launch the EvenMore premium seating option in mid-November 2024, offering customers a new extra legroom experience.
- Operational Reliability: B6 achieved a 12-point improvement in on-time performance and successfully optimized 20% of its East Coast leisure network, including route realignments from Providence and Hartford airports.
- Financial Fortification: The airline secured $3.2 billion in financing to retire debt, support capital expenditures, and strengthen its liquidity position, which stands at US$4.1 billion.
Some of the actions JetBlue has taken to implement JetForward include:
- Fleet simplification: JetBlue is prioritizing the delivery of the Airbus A220 over the A321neo. The airline is also returning some aircraft, including E190s and A320s, over 2024 and 2025.
- Airport experience: JetBlue is adding lounges to John F. Kennedy International Airport's (JFK) Terminal 5 and Boston Logan International Airport (BOS).
- Blue Basic fare: JetBlue made changes to its Blue Basic fare to allow customers to bring a carry-on bag onboard.
Financial Performance, Outlook
JetBlue posted a third-quarter GAAP net loss of US$60 million, US$93 million less than the same period last year, with a slight year-over-year increase in revenue to US$2.4 billion. Despite capacity reductions, the airline improved its operating margin by five points and reported cost-saving achievements, including US$169 million in structural cost savings.
JetBlue projects positive unit revenue growth for the fourth quarter, with CASM ex-fuel costs forecasted to rise by up to 15% year-over-year due to fuel expenses and strategic adjustments. Chief Financial Officer Ursula Hurley remains confident that JetBlue will achieve its EBIT target of US$800-$900 million in 2025 as JetForward initiatives advance.
JetBlue’s full earnings presentation is available at JetBlue's Investor Relations.
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November 2024
