JetBlue Posts Fourth Quarter 2024 Results

DALLAS — JetBlue Airways Corporation (B6) has reported its financial results for the fourth quarter of 2024.

The New York-based airline achieved a fourth-quarter operating margin of 0.7% and an adjusted operating margin of 0.8%. B6 also delivered US$395 million of 2024 revenue initiatives, “US$95 million above target.”

Key Financial Results for Q4 2024

• Net loss of US$44 million (GAAP) or US$0.13 per share
• Operating revenue of US$2.3 billion, down 2.1% year-over-year
• Operating margin of 0.7% (0.8% adjusted)
• Capacity decreased by 5.1% compared to the previous year
• Average fuel price was US$2.47 per gallon (including hedges)

Major Operational Highlights

• Maintained approximately 99% completion factor
• Improved on-time performance by five points year-over-year
• Reduced controllable cancellations by about 45%
• Ranked 6th in Wall Street Journal's 2024 Airline Rankings (up from last place in 2023)
• Opened a new crew base in San Juan, Puerto Rico

Strategic Initiatives (JetForward Program)

• Delivered US$395 million in revenue initiatives, exceeding the target by US$95 million
• Contributed US$90 million to EBIT in 2024
• Optimized about 20% of the network
• Closed 15 cities while launching service to new locations
• Announced plans for the domestic first-class cabin on non-Mint aircraft starting in 2026

Financial Position

• Ended Q4 with US$3.9 billion in unrestricted cash and investments
• An additional US$600 million undrawn revolving credit facility is available
• Deferred approximately US$3 billion in capital expenditures
• Raised over US$3 billion in strategic financing during 2024

2025 Outlook

• Projecting positive adjusted operating margin of 0.0% to 1.0% for the full year
• Expecting flat capacity growth for the full year
• Forecasting revenue per available seat mile growth of 3.0% to 6.0%
• Anticipating capital expenditures of approximately US$1.4 billion
• First quarter 2025 guidance includes:
  
  • Capacity decline of 2.0% to 5.0%
  • Fuel price expected between US$2.65 to US$2.80 per gallon

Comments from JetBlue CEO, President

"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 chief executive officer.

"We finished the year strong, exceeding both revenue and cost expectations with operational reliability delivering for our customers throughout the holiday season. I am proud of our crewmembers for navigating an immense amount of change and continuing to deliver exceptional service for our customers and our shareholders."

"Looking ahead to 2025, we are laser-focused on executing JetForward and building on the momentum from 2024. While this year will not come without its challenges, our strategy is in place to tackle those obstacles head-on. 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."

"We have the right initiatives in place and solid momentum headed into 2025," said Marty St. George, JetBlue's president.

"Our reliability initiatives are driving greater customer satisfaction and our network changes are in the early stages of ramp. Our efforts to expand and enhance our products and perks, including the loyalty initiatives we plan to launch in 2025, are resonating and deepening engagement with our core customers. We believe the culmination of these efforts will boost our revenue performance in 2025 to ultimately drive positive operating margin for the year."

"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 chief financial officer. "I am confident we have the right team and plan in place to deliver on our goals in 2025."

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