With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

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The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

This year’s Fortune 500 marks the 68th running of the list.

This year’s Fortune 500 marks the 67th running of the list.

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This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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U.S. airline JetBlue, which began service in 2000, flies to 100 destinations with 22,000 crew members as of 2025. Known for its East Coast network, especially for leisure travel, JetBlue was an early pioneer of customer experience, including seatback entertainment. After a terminated deal to acquire Spirit Airlines in 2024, JetBlue has sought other paths forward, including a partnership with United Airlines, announced in May 2025, that allows customers to link loyalty programs between the two airlines.

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JetBlue Airways (JBLU): Company Profile, Stock Price, News, Rankings

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JetBlue Airways

jetblue airways

Good morning. My name is Rob. I would like to welcome everyone to the JetBlue Airways First Quarter twenty twenty five Earnings Conference Call. As a reminder, today's call is being recorded. At this time, all participants are in a listen only mode.

I would now like to turn the call over to JetBlue's Director of Investor Relations, Koosh Patel. Please go ahead, sir.

Thanks, Rob. Good morning, everyone, and thanks for joining us for our first quarter twenty twenty five earnings call. This morning, we issued our earnings release and a presentation that we will reference during this call. All of those documents are available on our website at investor.gemblue.com and on the SEC's website at www.sec.gov. In New York, to discuss our results are Joanna Garrity, our Chief Executive Officer Marty St.

George, our President and Ursula Hurley, our Chief Financial Officer. During today's call, we will make forward looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward looking statements include, without limitation, statements regarding our second quarter and full year 2025 financial outlook and our future results of operations and financial position, including long term financial targets, industry and market trends, expectations with respect to tailwinds and headwinds, our ability to achieve operational and financial targets, our business strategy and plans for future operations and the associated impacts on our business. All such forward looking statements are subject to risks and uncertainties and actual results may differ materially from those expressed or implied in these statements. Please refer to our most recent earnings release as well as our twenty twenty four ten ks and other filings for a more detailed discussion of risks and uncertainties that can cause actual results to differ materially from those contained in our forward looking statements.

The statements made during this call are made only as of the date of this call and other than as may be required by law, we undertake no obligation to update this information. Investors should not place undue reliance on these forward looking statements. Also, during the course of our call, we may discuss certain non GAAP financial measures. For an explanation of these non GAAP measures and a reconciliation of corresponding GAAP measures, please refer to our earnings release, a copy of which is available on our website and on sec.gov. And now I'd like to turn the call over to Joanna Garrity, JetBlue's CEO.

Thanks, Chris. Good morning, and thank you for joining JetBlue's first quarter twenty twenty five earnings call. During the first quarter, we continued to make progress on Jet Forward, ran a strong operation and efficiently managed costs. We have remained focused on controlling what we can and executing on our long term strategy, while managing the challenges of an uncertain economic backdrop and weakened consumer sentiment. When we guided the first quarter back in January, we saw early indications of softening demand, which was incorporated into our RASM guidance at the time.

I'm pleased that RASM for the quarter met our initial guidance. We also finished the quarter at the low end of our initial capacity range and firmly beat the midpoint of our CASM ex fuel guidance, building on our consistent track record of executing on costs. The relatively strong booking trends we saw throughout January deteriorated into February and worsened further in March. As we look to the second half of the year, the outlook remains unpredictable. And given the macroeconomic uncertainty, we are not reaffirming our full year guidance.

We plan to provide a more meaningful update on our full year expectations later in the year when we have better visibility. We are leaning into our experience successfully navigating the two thousand and eight financial crisis and the COVID-nineteen pandemic to inform our immediate path ahead and take decisive action. Additionally, we are fully committed to executing our long term strategy, JET Forward, to drive necessary long term transformational change to our business, and we are confident that this is the right plan. In the first quarter, we saw several proof points that Jet Forward is working. Turning to Page four of the earnings presentation.

Our efforts to deliver reliable and caring service have led to consistent year over year improvements in A14 over the last three quarters. In the first quarter of twenty twenty five, A14 was nearly four points better year over year despite significant weather events across our network. We're proud to have entered 2025 with industry leading Net Promoter Score performance. And for the first quarter, NPS improved double digits year over year, marking the fourth consecutive quarter of year over year growth. NPS is a strong indicator of customer retention and brand loyalty, which will be important as we navigate through the uncertainty.

Encouragingly, we are seeing reassuring signs that the premium segment is holding up better in the current environment, which supports the evolution of our product offering as part of JET Forward. Initiatives under our products and priority move are advancing nicely, and Marty will go into greater detail on their progress. We've also seen early indications that our network changes are working in the Northeast, particularly in markets where JetBlue already holds significant relevance. Lastly, we continue to make progress on our cost transformation program, and we expect savings to ramp during the second half of the year. While our strategy did contemplate a stable economic backdrop, the current macro environment does not change our ultimate goal, breakeven operating profitability and eventually a return to sustained profitability, which remain our North Star.

As a reminder, Jet Forward is a multiyear plan. And as we continue to make progress, we are also acting expeditiously to manage near term uncertainty. We were the first carrier to make meaningful capacity adjustments in response to changes in the environment, pulling 2.5 points of trough capacity from March and making early changes to April. Since then, we've executed similar reductions across the second quarter and we'll continue to make adjustments to better match supply with demand throughout 2025. Simultaneously, we continue to evaluate all opportunities to reduce costs and return our focus to our core business.

This includes efforts to limit discretionary spending and to reduce nonessential hiring. Additionally, in a lower capacity environment, we also expect savings on maintenance. As we meaningfully adjust capacity to address economic conditions, we are committed to pulling all levers available to mitigate potential upward pressure on unit costs. The actions we are taking are intended to support our business amidst the current macro backdrop and build resiliency against a prolonged economic slowdown. In that scenario, the capital structure decisions we've made over the last sixteen months have resulted in a more durable liquidity position to support the near term demands of our business.

You'll remember that in August of twenty twenty four, we raised over $3,000,000,000 of strategic financing, primarily backed by our loyalty program. As a result, our total liquidity at the end of twenty twenty four, excluding our 600,000,000 revolver, was $3,900,000,000 representing 42% of our trailing twelve month revenue, the strongest liquidity ratio in the industry. Last year, we also made the decision to defer $3,000,000,000 worth of CapEx, pushing out A321neo deliveries to the 2030s as we focus on returning to profitability and generating free cash flow again. In addition to a durable liquidity position and a manageable horizon of spend commitments, we hold a healthy unencumbered asset base of more than $5,000,000,000 This provides us with the financial flexibility and liquidity to weather a broad spectrum of economic outcomes. I'm confident we have the right long term strategic plan, and we are taking the appropriate steps to navigate what is ahead and position JetBlue to deliver long term value for our shareholders.

And to our crew members, thank you. Thank you for continuing to deliver a safe and reliable operation over the quarter. The improvements in our customer satisfaction scores are a direct testament to the reliable and caring service you continue to provide. Over to Marty for an update on revenue trends and our outlook.

Thank you, Joanna, and thank you as well to the best crew members of the industry. So turning to Slide seven. In late January, we guided to what we were seeing at the time. January bookings were strong, but February and March bookings were showing signs of softness, particularly in the shoulders and troughs. We are pleased with the approach our team took to identify the evolving trends early and take action in response.

We ended the quarter as the only airline with year over year unit revenue within initial guidance and RASM increased 1.3% year over year on guidance of down 0.5 to up 3.5%. ASMs were down 4.3% year over year in the first quarter within the range of our revised capacity guidance of down 5% to down 4%. During the quarter, peaks were relatively healthy and unit revenues held up well compared to the troughs. Close in demand, however, did not materialize at a similar rate to what we saw in the fourth quarter and in January, impacting our bookings, but more acutely affecting trough and shoulder flying. January and February troughs performed better than the trough following President's Day until Easter.

And accordingly, we adjusted our network to better match supply to the trends we're seeing, cutting capacity across 20 different markets centered on off peak days of week during that period. We saw weakness across our domestic network. However, our international flying delivered relatively stronger performance year over year. Transatlantic RASM was up 28% year over year and 25% fewer ASMs, benefiting from seasonal optimization. The vast majority of our Transatlantic bookings come from U.

S. Point of sale, which has remained stable. Latin also performed relatively better than domestic. And while the region is lapping a weaker first quarter twenty twenty four, I'm very pleased that unit revenues are up mid single digits year over year. Premium also performed exceptionally well during the period.

In late January, we launched our enhanced Even More offering with solid early results, alongside continued year over year strength in preferred seating, both meeting expectations despite customer volumes lower than initial plan. In the first quarter, premium RASM, including Mint and Even outperformed core RASM by high single digits. While other well cost carriers are just now expanding into premium, our customers have demonstrated strong demand for our Mint and Even More products for over a decade. And now, even in times of relative uncertainty, customers continue to display an appetite for premium experiences, and the further expansion of premium offerings is a significant component of our products and perks priority move within JetFord. Growing our loyalty program is another component of the JetFord plan.

And during the quarter, loyalty revenues grew by 9%, bolstered by new partnerships, additional redemption opportunities and the launch of our premium co branded credit card at the January. Our new premium card is exceeding sign up goals, a testament to the strength of our loyalty program and the value our customers place on our brand and our product. Co brand spend also remained robust, up 7% for the quarter. To complement our products and perks, we are building the best East Coast leisure network. While our network adjustments are still in the early stages of ramp, we are beginning to see the initial benefits from new blue cities, primarily secondary cities that are within the catchment area of our Northeast focused cities.

This further reinforces our decision to pursue growth in markets that know and love the JetBlue brand. As we refocus in our core markets, we also recognize the importance of providing customers with more utility for TrueBlue points and greater connectivity. We are pleased to have announced earn and burn of TrueBlue Points with the Japan Airlines earlier this month. Furthermore, we have made good progress on discussions regarding a domestic airline partnership and are expecting an announcement at some point during the second quarter. In the first quarter, we made solid progress on JetForward and achieved our first quarter EBIT goal, further reinforcing that our plan is working.

Our goals have not changed. And though some revenue initiatives may ramp slower due to capacity reductions, many priority moves, especially reliability and cost transformation are insulated from the macro environment. JetForward remains crucial to building a more competitive and resilient JetBlue. As planned, we look forward to sharing a more detailed update during our second quarter call. Turning to second quarter.

We continue to see the current macro backdrop negatively impact consumer sentiment and travel demand, especially during our peak travel periods, resulting in a wider spread between trough and peak unit revenues. Looking at March and April performance combined, RASM during peaks was up high single digits, while off peak RASM declined double digits year over year. We saw particular weakness in domestic markets and on days and times that are generally less attractive to customers. The second quarter's booking curve is more exposed to the uncertain macro environment and associated booking trends, and we expect unit revenue down between 7.53.5% in the quarter, on capacity down 3.5% to down 0.5%. We continue to manage aggressively our capacity based on the evolution of the demand environment.

And the midpoint of our guidance has us flying nearly five points fewer ASMs in the second quarter than initially scheduled at the beginning of the year. We've made efforts to meaningfully reduce trough capacity, especially on Tuesdays and Wednesdays during the worst performing times of the day. We recently decided not to launch our Boston to Halifax, Nova Scotia flight as planned based on advanced booking versus expectations. This was a difficult decision, but we are acting swiftly to meet the demands of the environment. For example, we are reintroducing our Fort Lauderdale to Guayaquil Ecuador serving a VFR market with better performance.

And as we move through the back half of the year, we will continue to demonstrate a bias towards action when contemplating capacity decisions. While the environment is challenging for top line growth right now, we do see encouraging signs that premium and international bookings are holding up better. TrueBlue member activity and premium related purchases now account for a large majority of our revenue, which creates a strong foundation and there's resiliency against a potential future downturn. Our network strategy continues to build upon the strikes, and our recent growth into regions with high loyalty penetration is producing margins above our system average. The changes we are making to our network operation and loyalty program build upon the already strong brand loyalty we have.

In the first quarter, loyalty member engagement reached all time highs, evidence of the enduring and growing strength of our brand. Even in difficult times, we are growing and strengthening our relationship with our customers and building the foundation of our long term strategy. In closing, I want to reiterate that as we move throughout the year, we have a bias towards action, and we are urgently moving to address evolving trends with a focus on operating margin and cash generation. That said, we remain fully committed to our long term strategic priorities. JetFord is essential to meeting the needs of our customers and crucial to our long term success.

We have made progress over the first quarter, and we look forward to providing a more thorough breakdown of initiatives during our second quarter call. Thank you. And now over to Ursula for an update on the balance sheet and cost outlook.

Thank you, Marie. Turning to Slide nine. The current macro backdrop remains fluid, but I am confident we are well positioned to weather a range of outcomes. As Joanna mentioned, when we raised funds last August, we had considered the need to provide JET Forward the runway to execute, including better insulating our long term strategy from macro volatility. In the process, we raised $3,200,000,000 in capital through a combination of loyalty backed securities and unsecured convertible notes.

The initial goals of this raise were threefold. First, we addressed our 2026 convertible note, which we paid down by $425,000,000 leaving a much more manageable $325,000,000 outstanding due in April 2026. Second, we wanted to prefund 2024 and 2025 CapEx. And third, we sought to provide a liquidity runway for 2025 and into 2026 to support jet forward execution and build resiliency against macroeconomic uncertainty. As a result, JetBlue is currently well positioned with ample liquidity.

Excluding our $600,000,000 undrawn revolver, liquidity at the end of twenty twenty four represented 42% of trailing twelve months revenue compared to 29% in the February at the onset of the financial crisis and just 16% in the fourth quarter of twenty nineteen before COVID. Supplementing our strong liquidity position is a robust base of unencumbered assets valued at over $5,000,000,000 primarily consisting of aircraft, engines and slots, gates and routes. If the recovery is prolonged, we believe we have the hard assets available to ensure financing flexibility. In 2024, we also took steps to amend our order book and delivery schedule to reduce cash outlay during our transformation. We deferred the majority of our A321neo deliveries to 02/1930 and beyond, pushing out $3,000,000,000 of capital expenditures in the process.

In 2025, we now expect 21 deliveries from Airbus, eighteen A220s and three A321s. We had two A220s and one A321neo shipped into 2026. And as a result, CapEx for the year is now expected to be about 1,300,000,000.0 With respect to tariffs, our aircraft are assembled in The U. S, Canada and Europe using components from around the world. We do not expect a meaningful tariff impact in 2025 as most of our upcoming aircraft deliveries are assembled in The United States.

We continue to evaluate the industry wide tariff exposure outside of aircraft purchases, focusing on spare parts as well as repairs happening abroad. The situation is fluid, and we plan to be nimble in responding to the changing conditions in how and where we source. Our highly valuable fleet and unencumbered asset base are the biggest levers at our disposal to preserve cash. And given the current demand environment, we are actively exploring adjustments to our fleet plan. As we previously discussed, we have a number of A320 aircraft, which we were planning to extend.

They remain a great option for capacity planning flexibility, but we are currently reevaluating exactly how many of these aircraft will be extended. Additionally, as a reminder, we are still on track to exit the E190 fleet at the end of this summer, which will provide incremental cost and maintenance savings. Through our fleet modernization program, we have avoided over $100,000,000 of costs to date and expect further cost avoidance in 2025. Looking ahead to our contractual obligations over the next three years, other than the $325,000,000 remaining on our 0.5% convertible notes, we have no significant maturities beyond regular amortization and principal payments, reflecting a manageable level of upcoming cash outflows. Turning to Slide 10.

In addition to our prudent balance sheet measures and cash preservation efforts, we recognize in this environment, it is even more critical we meet our controllable cost goals. The first quarter marks the sixth consecutive quarter that we have met or beat our CASM ex fuel guidance. And during the quarter, we achieved year over year unit cost ex fuel growth of 8.3% better than our initial guidance midpoint of 9%. Capacity reductions we actioned during the quarter pressured unit cost by about one point, but we were but were offset by one point of cost savings from strong controllable cost execution and reliability driven savings. We also had a little over zero five point of cost shift out of the quarter from the timing of maintenance events and other expenses.

We still expect the first quarter to be the peak of year over year CASM ex growth. And for the second quarter, we expect CASM ex fuel to grow 6.5% to 8.5% on capacity down two percent at the midpoint. It should continue moderating into the second half of the year as we lap last year's pilot step up, the cadence of maintenance events declines and our cost transformation program continues to ramp. This guidance does not contemplate any potential cost increases from tariffs, and we continue to work tirelessly to adapt our cost structure to the macro environment and capacity adjustments. For the full year, while we are not reaffirming our prior cost guidance at this time, our model historically implied mid single digit CASM ex fuel growth on flat year over year capacity growth.

We are managing our business to this expectation, and we plan to pull all levers at our disposal to offset further potential capacity related cost pressures. Joanna mentioned several of the cost levers we are working through. We've put in place programs to reduce spend and set targets for corporate budget reductions. We also continue to take steps to better match resources with our flying schedule. And in the first quarter, we implemented measures to better align pilot staffing with our evolving fleet mix and capacity, such as offering a successful early retirement program.

In addition to these cost saving efforts, we are actively working on a number of additional initiatives to optimize our cost structure and focus on our core business. Our cost reductions are intended to be thoughtful and targeted. And given the macro backdrop, we are being careful not to take broad stroke cuts that may jeopardize our ability to continue executing on JetForward. We are in the midst of repositioning JetBlue to deliver value throughout the cycle, And as such, we are continuing investments in high return projects, and we remain focused on our long term priorities. To that end, we continue progressing on our cost transformation through JET Forward.

As we mentioned on our fourth quarter call, savings this year are focused on technology driven efficiencies in our operational and commercial functions, enhanced planning and sourcing strategies and cross functional fuel burn optimization efforts. As a reminder, our fuel hedging program has been opportunistic, and we currently do not have any fuel hedges in place. If fuel continues to moderate alongside suppressed revenue trends, we should fully benefit from the decline in crude prices. In the second quarter, we forecast fuel price per gallon to be $2.25 to $2.4 As we wrap up, one thing is clear. We're navigating uncertain times, but this isn't unfamiliar territory for us.

We have faced challenges as a team before, and this time, we are equipped with JET Forward to guide our near term actions and long term focus. In the first quarter, we saw results that demonstrate JET Forward is working, and we remain confident that it will help us restore sustained profitability and deliver long term value for our shareholders. At the same time, we have taken immediate steps to proactively navigate near term uncertainty while ensuring JetBlue is prepared to manage through a potential downturn. We are focused on what we can control and will pull all levers to manage through this unpredictable environment in support of our owners, crew members and customers. Thank you.

We will now take your questions. We'll turn it back over to Rob.

Thank you. We will now begin the question and answer session. Your first question comes from the line of Duane Pfennigwerth from Evercore ISI. Your line is open.

Hey, thanks. Good morning. Wonder if you could just speak to the when the change in bookings pattern really started? What adjustments you made to revenue management? Obviously, you're taking some capacity out as well.

And how you would characterize bookings patterns now? Some others have spoken to stability. And I guess the most important, what are you assuming with respect to the rest of the quarter and a month like June specifically?

Duane, it's Marty. Thanks for the question. And let let me go back to January. And it's funny when we did our guide, we had seen the we we definitely had seen booking slowing down in January. And frankly, when our competitors were guiding higher, we're looking at the data that we're seeing from from ARC and other sources and thinking, I don't know what they're seeing because it doesn't look that great for us.

So we guided what we guided. You know, we took a hit for it. It turns out we were right. Just wanna mention that again. But as far as what we've seen in bookings, we've seen a couple of step downs since then.

And I think that's why we reacted so aggressively with capacity cuts. You know, we had cut you know, in February, we're cutting March capacity, and we cut some April capacity at the same time. And again, we've been pretty aggressive at reacting to the bookings we're seeing by pulling that capacity. I would say as far as where we are right now, we're probably three to four weeks at a plateau. And what we're guiding for second quarter is based on the trends we're seeing today.

So we're not assuming recovery. We're not assuming a further step back. But in general, I think we've had a relative period of stability recently. And hopefully, this is the plateau that we'll count on for a while until we start bouncing back.

And if we just think about your focus origination areas, New York and Boston, do you think there's something going on with those geographies? Or maybe it's more a competitive capacity situation for you in those geographies? Because I thought the message was that maybe some of that competitive build was moderating.

Yes. It's a great question. And obviously, we dig into this in as much detail as we can. We start with the ARC data, which, you know, many airlines use, but not all. And many airlines rent it, but not all.

But, that clearly showed from the beginning that, this seemed to be a bit of a Northeast led slowdown of demand, more so than other parts of country by by by multiple points. Again, we'd like to triangulate with other data. We spent time with our bank partners at Barclays and and with Mastercard, our network. And we've got some really, really great data from Mastercard. And it is clearly showing that as far as the cut in air travel, it is very much focused on the Northeast and to a lesser extent, the West Coast.

So I I would not do something as simple as to say this is a red versus blue recession or whatever we wanna call it, but, it does seem like the coast seem to be impacted a little bit more. And frankly, it's really what's driven our capacity strategy. You know, as we mentioned, we've been pulling pretty aggressively our trough capacity, geo Tuesdays, Wednesdays, Saturday nights, in the Northeast. We just added some capacity in Fort Lauderdale with, new frequencies in the Fort Lauderdale South to The Caribbean and, to Guayaquil. And frankly, we're gonna do what we have to do to make adjustments like this.

We just we just canceled announced I think last week, announced the cancellation of Halifax, which I think in history of the company, have never canceled the city before it opened. But I think of the trends we're seeing in US, Canada demand and more importantly, we're seeing in the bookings on the airplane, it was not going be accretive for us anytime soon. So we figured we'd rip off the band aid now and move forward.

Your next question comes from the line of Savi Syth from Raymond James. Your line is open.

Hey, good morning, everyone. I was wondering if you were able to provide little bit of a range for the second half kind of capacity outcome, just maybe like a realistic upper and lower bound assuming the current environment continues?

Hey, Savi. So I'd say given we've got a couple of scenarios laid out as far as what we're expecting. I would not wanna go as far as guide a number for the year. We will certainly be measurably down from what we'd expected at the beginning of the year based on the trends we're seeing right now. But we're gonna be very opportunistic based on the demands that we see.

And frankly, I remain optimistic that this is a transitory situation that we're in right now. You know, I've been through so many financial crises and recessions before. This is different. You know, it's an exogenous factor driving it, and I think that exogenous factor could change relatively quickly. So we're gonna be even optimistic.

And I I think that the the the best guidance I can give you is we will react to the demand we're seeing at the time. Airlines seem to let it, and my hope is that as things change that airlines will lead us out of it.

That's helpful. Thanks, Marty. And then, you know, you mentioned a domestic partner, Marty, that could be announced in 2Q. Could you remind us kind of what that partner brings to the table for JetBlue and and when we can start to see benefits from such a partnership?

So partnerships. I I need to make sure I reserve my comments based on what we have said publicly. And what we have said is we are looking at and we're talking to multiple airlines about domestic partnerships. I think we're getting very close to making announcement, expect to make the announcement this quarter. And as far as the benefits that we expect to offer to our customers, now the most important thing is number one, a significantly higher network opportunity for earn and burn of TrueBlue points, which we think greatly improves utility of TrueBlue.

And that means, you know, for example, you know, today, if you are a customer in the Northeast and you love JetBlue for leisure, but, you know, twice a year, you have to go to Omaha or Boise, You know, these are places that you can't earn through BluePoints on now. And when this partnership goes forward, you will be able to. And the second thing is I'm really excited for just the overall broadening of the network opportunities, you know, not just connectivity, but also just a sort of better opportunities for our customers to fly more places with more frequency. So as far as when the benefits could come, we do have a number in JetForward for partnerships. It is a number that does not assume a partnership of this size.

As we've said, we'll be updating the the progress on JetForward in the next quarterly call. And if we do assume we do sign a deal or complete a deal and announce it, if we do need to update that number, we'll do that at the time. But we're really optimistic about what this means for our customers and obviously for our investors.

Your next question comes from the line of Jamie Baker from JPMorgan. Your line is open.

Hey, good morning, Marty. So following up on that, my first question is when you say domestic partnership, does that mean partnership with a domestic airline or providing domestic feed to a nondomestic airline. Given the Omaha example that you gave in response to Saudi, I I suspect it's the former. But if I could just confirm that.

Sure. Mean, as a reminder, we already have 48 or 49 partnerships with international carriers at our overseas. This is a domestic airline with a larger network. It's the former.

Okay. Thanks. And then, you know, I guess for Joanna. So every downturn, I always wonder, you know, which airline franchises might emerge potentially stronger on the other side. You know?

And I think, you know, I think United made some, you know, fair and accurate comments about, you know, Southwest being that airline in the past, you know, and, you know, harnessing the power of the downturn, all that kind of stuff, however you wanna put it. So when I go down the list of US airlines and I get to JetBlue, it's not readily apparent to me whether there might be any silver lining to the current environment. And and that's not necessarily a bad thing at all. I I guess my question to you is, you know, what areas of your business or or maybe the timing of certain initiatives, Any aspects of JetForward that might be assisted in some way, shape or form by the downturn?

Yeah. Thanks for the question. I think we're extremely happy with how JetBlue performing. So I think we've got this great long term strategy. And I'm going emphasize long term because we're not managing JetBlue quarter to quarter.

It's a long term strategy that will get JetBlue back on the path to profitability. And then at the same time, we're taking, closer in tactical actions to manage the, underlying macro environment. So when I look at JetFoWard, it's the right strategy for JetBlue. It leans into our strengths. And as you look at early proof points, particularly around the first priority move, which is reliable and caring service, I could not be more proud with the progress that we're seeing there.

And that's really a leading indicator. We've improved A14 every quarter since we've launched JET Forward. We've improved NPS four consecutive quarters in a row. We are at the top of the industry. We're the most improved in The Wall Street Journal, and industry leading.

And so when you think about what matters most, your brand, customer, reoccurring customers coming back time and time again, you know, these are very early indicators that and the cost savings that flows from all of that, running more on time operation. These are very early indicators that JET Forward is working. Then you get into the other pillars. So 20% of the network is currently in ramp, and you will see that continue throughout this year. Products and Perks are meeting or exceeding our targets.

Our even more, products that we launched back in January improved Net Promoter Score by 18 points. The Premier card that we launched far surpassed our initial expectations in terms of sign ups. Loyalty continues to ramp. It's 12% of our total revenue. We're beating costs six quarters in a row.

So when you look at Jet Forward, it's aligned with the latest industry demand trends, premium, international. And then we've got strong liquidity to enable us to have some runway to execute jet forward, get our first class product rolled out, but also navigate through some uncertain times. So I think the headline is we've got the right strategy for the long term. It's working. Obviously, the macro backdrop is challenging, and it may delay some of the, some of the, jet forward, earnings.

But, you know, these these pillars are working. The the strategy is working. And so we need a little runway to complete executing it. But at the end of the day, the brand, the product offerings are super strong, and that's what drives performance.

Okay. I appreciate the color. Thanks, Joanna. Thanks, Marty. Take care.

Your next question comes from the line of Michael Lindenberg from Deutsche Bank. Your line is open.

Hey, good morning. Hey, Ursula, I just I want to catch up with you on the Pratt and Whitney compensation situation. I think last quarter you were kind enough to provide us what that headwind was. It was a couple of points, I think direct and then there's an indirect impact. And that's been building.

It does look like that we now have more airplanes on the ground than say what we were a year ago. What like what's the timing around potentially settling that? Is that something that it's better for you to settle it sooner? Or does this go on for a few years? Because that margin underperformance, what it impacts you both on a revenue side, a cost side.

I mean, it is it's a real sort of albatross around your neck here. Where are we? What's kind of the game plan here?

Sure. Thanks for the question, Mike. So first off, we we've previously told you guys that we would have and the number of aircraft on the ground this year in the mid to high teens, We actually have seen improvement from Pratt and Whitney. So today, we sit here and we actually only have 10 aircraft on the ground. So we have been pleased with the progress that we're seeing from Pratt operationally.

So there are two three drivers to that improvement. First, engines are just staying on wing longer, so I'm not having to go in the shop as soon as we anticipated. Number two, Pratt supply chain is improving. And then number three, the actual turn time once the engine goes into the shop is slightly improving. So we're very pleased with the progress that we're seeing.

Like quite frankly, this is happening. We're getting aircraft back at a time when we don't necessarily need capacity. When we do get on the other side of this macro backdrop environment challenges, this will be a tailwind for JetBlue. To your point, we previously highlighted in January that the Pratt and Whitney constraints that we're under is driving, you know, three points of margin degradation. So, again, that will be a tailwind, you know, in the future for JetBlue.

In terms of the compensation, it continues to remain fluid with Pratt and Whitney. We continue to work with them. I don't have any updates on that today. We want to ensure that we get adequate compensation based on the challenges that we've been facing over the last few years.

Okay. But just to be clear, you're not booking any GTF related compensation in your P and L right now. I'm only asking because many GTF impacted operators are all booking it through their p and l. Are Is that right?

Do not have any Pratt and Whitney assumptions baked into our full year guidance for 2025. So correct, we are not booking anything.

Okay, great. And then just second, Marty, just new markets adding service into Guayaquil again. Given just the fact that this is a challenging year, should we expect to see any new dots on the route map this year? Or is all that now on hold, because of the very unclear outlook?

You know, it's funny. I'm I'm actually no one's asking that question. I'm not sure if we say this stuff. There'll be multiple new dots coming later in the year in the room now.

Motherhood could be two, but definitely more than one.

Your next question comes from the line of Tom Fitzgerald from TD Cowen. Your line is open.

Hey, everyone. Thanks so much for the time. I was just curious if the spread between

premium and core RASM, how that's how your what your outlook for that is for the for 2Q and

Hey, Tom. Thanks for the question. So it's it's a great question because, honestly, you know, there are two important numbers there, which is what do we expect the coach RASM to do and what do expect the premium RASM to do. I think we continue to see progress on premium RASM going up. You know, we're at mid single digits and climbing right now as far as year over year growth in premium RASM.

You know, our hope are that with the changes we're seeing in industry capacity and our capacity, that coach RASM will continue to go up a little bit. So, you know, I I I don't expect that gap to widen, but I'm hoping it's because the the the the bottom of the the lower number, in other words, the the back of the airplane RASM will continue to go up. So I I you know, I'll remain optimistic. You know, we're taking a lot of action ourselves with capacity. You know, we have we some some of our second quarter capacity went in capacity cuts went in last weekend, and you guys will

And frankly, the industry overall seems to be reacting in a in a way, which is what as demand comes out, capacity comes out. And hopefully, that will help show up what we're seeing in the back of the airplane.

JetBlue Airways (JBLU) Q1 2025 Earnings Call Transcript

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