JetBlue Airways Corp. (NASDAQ:JBLU) reported better-than-expected second-quarter 2025 results on Tuesday. The company delivered a modest operating profit and reinforced investor confidence in its JetForward turnaround strategy despite persistent macroeconomic headwinds.
The airline posted an adjusted net loss of $58 million, or 16 cents per share, beating analyst estimates of a 34-cent loss. Revenue totaled $2.36 billion, down 3% year over year, but above Wall Street’s expectation of $2.27 billion.
The company’s adjusted operating margin improved to 1.3%, marking a return to profitability after posting a negative margin in the previous quarter. On a GAAP basis, JetBlue reported a net loss of $74 million, or 21 cents per share.
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CEO Joanna Geraghty said the company exited the first half of 2025 with meaningful progress on its multi-year JetForward plan, citing operational investments that improved on-time performance by three percentage points year over year and drove a double-digit increase in customer satisfaction. “Despite facing an uncertain economic backdrop, we met or exceeded our financial targets,” Geraghty said.
JetBlue’s capacity in the second quarter declined 1.5% from the year-ago period, while total operating expenses fell 0.9% to $2.4 billion.
Operating expense per available seat mile, excluding fuel (CASM ex-fuel), rose 6.0% year over year. However, due to continued cost control initiatives, it remained below the high end of the company’s guidance. The average fuel price was $2.40 per gallon.
The airline said it delivered $90 million in incremental EBIT from JetForward in the first half of 2025, bringing cumulative gains under the plan to $180 million.
In May, JetBlue launched “Blue Sky,” a new interline partnership with United Airlines that allows customers of both carriers to access expanded routes and earn and redeem loyalty points across each network. The initiative is expected to generate $50 million more in EBIT than originally projected and further accelerate JetBlue’s transformation efforts.
As part of its cost optimization and fleet modernization strategy, JetBlue sold its remaining Embraer E190 aircraft and two future Airbus A321neo XLR deliveries. It also completed a transaction to divest select assets from its JetBlue Technology Ventures subsidiary to SKY Leasing, reducing costs while retaining the portfolio’s long-term upside.
Chief Financial Officer Ursula Hurley said the company is reinstating its full-year unit cost guidance from earlier in the year, despite flying 1.5 points less capacity than initially planned. She added that the outlook for grounded aircraft due to Pratt & Whitney engine issues has improved, with the company now expecting to average fewer than 10 aircraft on the ground in 2025, down from prior expectations of mid-to-high teens.
Outlook
During the earnings conference call, a JetBlue executive reportedly stated that the airline will not be providing revenue guidance beyond the third quarter due to a “choppy macro environment.”
For the third quarter, JetBlue expects capacity to range from a 1% decline to a 2% increase year over year. Unit revenue is forecast to fall between 2% and 6%, while CASM ex-fuel is projected to rise between 4% and 6%. Capital expenditures for the quarter are estimated at approximately $375 million.
For the full year 2025, JetBlue expects capacity to decline between 0.5% and 2.5%, while CASM ex-fuel is forecast to increase between 5.0% and 7.0%. The company anticipates interest expense of roughly $600 million and capital expenditures of approximately $1.2 billion as it continues investing in fleet modernization and operational improvements.
“Demand for air travel improved as the quarter progressed, resulting in significant strength for bookings within 14 days of travel, as well as for peak travel periods,” said JetBlue President Marty St. George. “We are encouraged to see that momentum carry into July, and we are optimistic that demand will continue to improve through the end of the year.”
Separately, JetBlue Airways and United Airlines (NASDAQ:UAL) announced Tuesday that they have completed the U.S. Department of Transportation’s review of their Blue Sky collaboration and are moving forward with implementation.
The partnership will enable customers to earn and redeem MileagePlus miles and TrueBlue points across both carriers, book flights across complementary networks through interline agreements, and access reciprocal loyalty perks such as priority boarding and same-day standby. Initial customer benefits will begin rolling out this fall, followed by expanded service at JFK and Newark. United also plans to adopt JetBlue’s Paisly platform to power non-flight travel offerings such as hotels, rental cars, and insurance.
Price Action: At last check Tuesday, JBLU shares were trading higher by 4.69% at $4.564.
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