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

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Industries included in the sector are airlines, transportation equipment, logistics, mail and freight delivery, railroads, shipping, and trucking.

Fortune Sector Leaders: Transportation

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.

This year's Fortune 500 marks the 66th running of the list.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

Here’s our look at 50 companies that do well by doing good.

Change the World

This year's Fortune 500 marks the 62nd running of the list.

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. 

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

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.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

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

legacy

JetBlue Airways

jetblue airways

Ladies and gentlemen, good morning. My name is Abby, and I would like to welcome everyone to the JetBlue Airways Second 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, Abby. Good morning, everyone, and thanks for joining us for our second 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 at our website at investor.jetblue.com and on the SEC's website at www.sec.gov. In New York, to discuss our results are Joe N.

Garrity, our Chief Executive Officer Marty St. George, our President and Ursula Hurley, our Chief Financial Officer. During today's call, we'll 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 third 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 businesses. 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 fiscal year twenty twenty four ten ks and other filings for a more detailed discussion of the risks and uncertainties that could cause the 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 the call and other than as may be required by law, we undertake no obligation to update the information. Investors should not place undue reliance on these forward looking statements. Also, during the course of our call, we may reference certain non GAAP financial measures. For an explanation of these non GAAP measures and a reconciliation of the corresponding GAAP measures, please refer to our earnings release, a copy of which is available on our website and at sec.gov.

And now, I'd like to turn the call over to Joanna Garrity, JetBlue's CEO.

Good morning, and thank you for joining JetBlue's second quarter earnings call. During the second quarter, we made meaningful progress with Jet Forward and met or exceeded guidance across all key metrics. Despite facing an uncertain macro backdrop, I am pleased that we produced a modest operating profit. We ran a strong operation and once again saw significant gains in customer satisfaction with second quarter net promoter score up double digits year over year. I want to take a moment to thank our crew members.

These results are a reflection of all of their hard work. As we entered the second quarter, demand stabilized and then accelerated as the quarter progressed. This resulted in a higher mix of close in bookings. I'm encouraged that we also saw this close in strength carry forward into July. However, I will note that weather and ATC related disruptions throughout the month of July have impacted operations.

In May, we marked another jet forward milestone, introducing Blue Sky, our collaboration with United Airlines. I'm pleased to say that we received confirmation that the Department of Transportation has completed their review, and we are now able to begin implementing Blue Sky. We'd like to thank Secretary Duffy, Assistant Secretary Edward, and the entire team at DOT for their engagement and thoughtful review of Blue Sky. As a reminder, this collaboration will benefit customers, increase the utility of TrueBlue, and further strengthen each airline's loyalty program. Blue Sky will enable JetBlue to sell nearly all of its flights on united.com via a traditional interline agreement and vice versa, with the opportunity to earn and redeem loyalty points across each other's networks.

United will also transition its distribution of nonflight ancillaries, such as hotels, rental cars and more, to our travel product subsidiary, Paisley, turbocharging its high margin growth. Blue Sky links two complementary networks with industry leading products and services to increase customer choice and benefits while promoting healthy competition. The collaboration is expected to contribute an incremental $50,000,000 of EBIT through 2027, accelerating JetForward. Including the benefit from Blue Sky, we are increasing our target for JetForward EBIT to a range of eight fifty million dollars to $950,000,000 through 2027. Marty will share more details on the individual drivers, but we are excited that Blue Sky will build on the tremendous progress we've made to date.

We are also pleased to report that our aircraft on the ground forecast due to the Pratt and Whitney GTF issue has improved, and we now expect to cycle through groundings much faster as a result. The revised forecast enables us to begin growing capacity again in 2026 through the end of the decade and achieve a more favorable unit cost growth trajectory. Ultimately, this will support our path back to restoring profitability. Turning to Page four of the earnings presentation. In 2024, we had a strong start to JetForward and realized $90,000,000 of EBIT early due to the success of revenue initiatives launched last year that ramped faster than we anticipated, including preferred seating and enhancements to our Blue Basic offering.

In the 2025, we've continued building on that momentum, realizing an additional $90,000,000 in EBIT across our four priority moves despite a far more challenging macro environment. Cumulatively, we've achieved $180,000,000 EBIT to date and remain on track to reach $290,000,000 in jet forward EBIT benefit by year end. Our efforts to drive a more reliable operation, part of our Reliable and Caring Service priority move, have brought significant operational improvements in the 2025. Our on time performance was up three points year over year, and Completion Factor was up zero five point, both industry leading improvements. These improvements are also reflected in our customer satisfaction scores.

And for the 2025, our Net Promoter Score was up double digits year over year, building on improvements made in 2024. In all, efforts to run a more reliable operation have contributed approximately $15,000,000 of incremental EBIT benefit over the 2025. We realized cost benefits from reduced disruption related spend, such as lower overtime pay and fewer customer reaccommodations. Additionally, we are seeing indications that customers are choosing us more often, proof that the investments we are making in our operation, such as implementing increased schedule buffers and launching new tools to enable customer self-service, are having a positive impact. We believe that on time performance and customer satisfaction are leading indicators for improved financial performance and that running a strong operation is essential.

These investments are especially important when we face disruptive weather, which is often compounded by air traffic control challenges as we have experienced across our network in July. Our efforts to adjust the network to our strengths and build the best East Coast leisure network are also maturing nicely. As you recall, in 2024, we closed 15 blue cities and redeployed over 20% of our network as we realigned to serve our core customer. These changes are ramping and are showing signs of relative improvement. For example, newer markets in secondary Northeast cities are exceeding expectations and are showing positive early traction.

Overall, network optimization represents $15,000,000 of incremental EBIT over the first half of the year. As part of our products and perf priority move, preferred seating continues to outpace expectations, and our new premium credit card is on track to double full year projections for acquisitions, highlighting the tremendous amount of demand by customers for our premium products. Lounges slated to open in JFK during the fourth quarter and in Boston Logan in 2026 remain on track and will complement our premium card to enhance the overall value proposition of TrueBlue. We are also updating our onboard experience to better serve our premium customers. This includes the enhancements even more launched earlier this year, and we also remain on track to begin rolling out domestic first class in 2026.

At the same time, we are reinvesting in our brand and living the fund value. '25 for '25, JetBlue's 20 birthday promotion, our partnership with Bad Bunny, and our newly released Dunkin' and Super Mario livery are driving excitement and reinforce our unique style and brands. Altogether, Products and Perks have generated $35,000,000 of incremental EBIT during the 2025. Lastly, our cost transformation is underway to secure our financial future with around 100 initiatives focused on technology enhancements throughout our business, supporting customer self-service, disruption management and fuel savings. In total, cost savings have driven $25,000,000 in EBIT and have contributed to our controllable cost outperformance with the second quarter marking our seventh consecutive quarterly cost beat.

Jet Forward is a comprehensive multiyear transformation, and we are making meaningful progress. Our operation is improving. We are building on our industry leading in flight experience, and we are getting back to our roots, reigniting JetBlue's spirit of innovation and disruption. We know there's more work ahead, but the momentum we've built gives us confidence that Jet Forward is the right plan, supported by the best crew members in the industry and a leadership team that is acting with urgency to meet the demands of a dynamic operating environment. With that, over to you, Marty.

Thank you, Joanna, and thank you to all of our crew members. As Joanna noted, improvements to our operational performance and customer satisfaction are true testament to the work that you do day in and day out. It does not go unnoticed. I'm thrilled to share that during the quarter, JetBlue was recognized by J. D.

Power as the top airline for first and business class customer satisfaction in the 2025 North America Airline Satisfaction Study. Our core experience also rose three spots to second place in the economy and basic economy segments and two spots to second place in the premium economy segment compared to 2024. Jet Forward and your commitment to the plan are driving real results and recognition. Over the quarter, we saw encouraging signs of an improved demand environment as the number of close in bookings accelerated as the quarter progressed. Before we review quarterly results, I want to take a moment to talk more about Blue Sky.

I'm very excited we announced this new collaboration with United. As we evolve our network, it is even more important to provide customers with more choices to earn and redeem TrueBlue points. Blue Sky features three primary value drivers. First, it will greatly increase choice for Blue Book members through the implementation of a traditional interline agreement, which expands our distribution reach and customer choice by cross merchandising flights on one of those websites and apps. Second, the collaboration promotes the growth of our loyalty business by offering reciprocal earn and burn between programs and elite status recognition, increasing utility of our points and the breadth and value of our program.

Lastly, the collaboration will supercharge us high margin, high growth and capital light Paisley business, which is JetBlue's white label platform for distribution of hotels, rental cars, cruises, travel insurance and packages under brands such as United and others. These EBIT benefits are split between our network priority move for interline benefits and our product and perks priority move for loyalty and paid new benefits. Blue Sky is accelerating our transformation while bringing demonstrable benefits to customers across our system. Further, while the partnership is expected to begin generating value as soon as the fourth quarter, we are already seeing promising early traction. Since announcing Blue Sky at the May, new credit card sign ups accelerated in June.

In fact, we have seen a double digit increase in average daily card acquisitions in geographies outside JetBlue's core markets. This is early evidence that the collaboration is increasing our relevance and making the TrueBlue program more attractive. On slide nine, we discuss the details of our second quarter revenue results and our unit revenue progression moving in the third quarter. We ran a strong operation during the second quarter and achieved a completion factor of 99.6%. Weather was generally favorable during the quarter despite the typical conductive weather challenges we saw during the back June.

We ended the second quarter with capacity down 1.5% year over year towards the better end of our initial range of down 3.5% to down 0.5%. Demand trends for the first quarter continued into the second, with bookings characterized by strong peaks and relatively weaker troughs. As the quarter progressed, we saw significant strength in bookings within fourteen days of travel. The close in bookings were especially apparent for peak travel and throughout June. In addition to close in strength, our second quarter RASM results were supported by action to better match supply with demand.

Early in the quarter, we took significant capacity action in the troughs, and we removed almost eight points above peak capacity from May and three points in June compared to the plan at the beginning of the year. Both the Easter and Memorial Day weekend peaks performed well. The Easter shift added almost 1.5 points to second quarter RASM. Peak RASM for the quarter was positive on book capacity year over year. We also experienced nearly a point of RASM benefit from Newark Book Away as the traffic disruptions caused customers to temporarily shift travel to alternate airports in multiple neighboring states.

That benefit was transitory as the runway reopened in early June. Overall, unit revenue declined 1.5% year over year in the second quarter, two points above the top end of our guidance range. The nature of close to bookings made forecasting challenging even within the quarter. In May and June, revenue generated within fourteen days of travel increased 7% year over year. Premium cabin, loyalty and transatlantic continued to demonstrate resilience.

Premium unit revenues were up mid single digits year over year during the quarter, and loyalty remunerations were up nine percent year over year. International continued to perform well, with transatlantic unit revenue up low single digits for the quarter. As you look to the third quarter, we have seen the closest strength carried into July, including the fourth of July holiday peak. We expect year over year unit revenue to be down between 6% and down 2% on ASMs ranging between down 1% and up 2%. As Joanna mentioned, we have faced more weather challenges than usual and elevated air traffic control delays throughout July, which have pressured the operation and our completion factor thus far in the third quarter.

Our third quarter capacity guidance assumes a more typical operating environment for August and September, and we'll continue to monitor our operations closely as the quarter progresses. We anticipate a similar demand environment in the third quarter compared to the second, with the continuation of strong peaks, elevated closer bookings and weaker troughs. Notably, while demand is improving, there are a few one time considerations that are impacting our sequential RASM progression. In the second quarter, we benefited from both the Easter shift and Newark, representing roughly two points of RASM uplift. During the third quarter, we'll be lapping one point of CrowdStrike benefit, or unlike many of our peers, we realized a revenue gain from peer book away during the event last year.

Additionally, the midpoint of our guidance for the third quarter translates to a roughly two point sequential increase in year over year capacity. Adjusting for these considerations, our third quarter RASM guidance implies continued demand and unit revenue improvement as we head into the second half of the year. Further out into the fourth quarter, we are optimistic that demand will continue to improve and we're using this as our overarching planning session. However, revenue forecast remains challenging given elevated levels of close in bookings and an improving but still choppy macro environment. Therefore, we will not be providing revenue guidance beyond Q3.

Thank you. And now over to Ursula for an update on our balance sheet and cost outlook.

Thank you, Marie. During the second quarter, we generated a modest operating profit, a small step on our road to sustain profitability. We also adjusted our fleet plan, remained disciplined with our balance sheet, and continued executing on our cost goals. These actions are grounded in our overarching objectives to enable capital efficient, long term growth, drive profitability and generate free cash flow. Turning to Slide 11 for an update on our fleet.

At the onset of the year, we shared that our Pratt and Whitney, GTS related aircraft groundings were expected to average mid to high teens for the duration of 2025 and to peak one to two years into the future. I'm very pleased to announce that the forecast for aircraft on the ground has improved materially, and we now expect to average fewer than 10 AOGs this year and believe that 2025 represents the peak with the number set to reduce as we progress into 2026 and fully resolve by the 2027. The improved AOG forecast is primarily driven by the extension of required maintenance intervals due to better than expected GTS durability performance and aggressive self help we have undertaken to source spare engines. As a result of geared turbofan challenges, we have not grown capacity since 2023, which has put meaningful pressure on unit costs and significantly impacted profitability. The revised forecast now positions us to return to long term capacity growth beginning next year.

Since these aircraft are returning to service and are not new deliveries, they represent an extremely capitalized source of growth. This will allow us to return to a more favorable unit cost per trajectory, supporting our return to profitability and free cash flow generation. Growing sustainably is important to our JET Forward strategy, and we have pursued various initiatives to balance growth, optimize earnings, and preserve capital across our fleet types. With our a three twenty fleet, we had planned to restyle all 10 of our remaining a three twenty classes to mitigate AOG capacity pressure. Given the improved AOG forecast, we have decided to pause the refiling of four aircraft and will instead park them after the summer peak as previously communicated to our crew members.

As we manage growth and balance sheet health, we have also decided to sell our two upcoming XLR deliveries. As a reminder, last year, we deferred roughly $3,000,000,000 worth of aircraft deliveries into the 2030s, including the majority of our a321 order book. Inducting these XLR deliveries would result in a costly orphan fleet of two aircraft for the remainder of the decade. Lastly, as previously announced, we officially end E190 flying at the end of this summer, simplifying our fleet from three to two types, the Airbus A220 and A320 families. The A220 replaces our E190s and offers higher gauge with 90% greater premium seat exposure and better fuel efficiency, resulting in a 25% to 30 improvement in direct operating cost per seat.

We took delivery of our fiftieth a two twenty earlier this month, and the fleet type represents the majority of our order block through 2029. For our e one ninety fleet, I'm pleased to announce we now have binding sale agreements for all 25 owned e one ninety aircraft and engines. The transition began in the third quarter and will continue through the 2026. Altogether, our revised fleet plan will enable sustainable and capital proven capacity growth through the remainder of the decade. Starting in 2026, we anticipate CapEx will decline steadily through the end of the decade commensurate with our delivery schedule and trend below $1,000,000,000 annually.

The fleet actions will also help to preserve liquidity in the short term. And in the second quarter, we ended with 3,400,000,000 in liquidity, excluding our $600,000,000 undrawn revolver. This represents 37% of trailing twelve months revenue compared to our liquidity target of approximately 20%, and we remain on track to end 2025 in excess of our target. Turning to Slide 12 for our second quarter cost results and third quarter outlook. The second quarter was another strong quarter for cost performance, driven by our operational execution and the progress of our Jet Forward cost transformation program, the team successfully mitigated pressures from closing capacity adjustments to end the quarter with CASM ex fuel up 6% year over year, better than our initial guidance of up six and a half to eight and a half percent.

This marks the seventh consecutive quarter we have achieved or beat our cost guidance. The beat is primarily from a better than expected completion factor for the quarter as well as timing shifts and fleet transactions. In addition to reducing capacity, we assessed our organizational structure and combined restructured certain roles for greater efficiency at the leadership level. We also implemented across the board budget reductions at support centers and are closely assessing all spending. A portion of the beat was attributable to these cost actions during the quarter as we took steps to respond to the evolving demand environment.

As part of our efforts to return focus to our core business, we also announced the sale of assets from JetBlue Ventures to Sky Leasing. This unique transaction allows us to retain the upside of the investment portfolio and other benefits, including continued access to cutting edge companies with greatly reduced costs. We expect to begin realizing these savings over the second half of this year. For the third quarter, we expect CASM ex fuel to be up 4% to 6% with approximately three points driven by maintenance and roughly two points from crew member wages as we fully lap the pilot wage increase from last August. Additionally, our third quarter Ex has been pressured by a difficult operation in July, representing a one point CASM Ex headwind from overtime, premium wages and other disruption related expenses.

Our guidance assumes a more typical operating environment for August and September. Also for the third quarter, there are roughly two points of CASM ex benefit driven by fleet transactions, the majority of which is the gain on sale from a portion of our e one nineties. We expect jet fuel to be in the range of $2.50 to $2.65 per gallon over the quarter, and we currently have no fuel hedges in place. For the full year, we remain focused on controlling what we can, and I'm pleased to announce we expect full year CASM ex fuel of up 5% to 7% year over year on one and a half fewer points of ASF at the midpoint of our guidance. This reinstates our initial unit cost guidance from the onset of the year despite lower capacity, illustrating the benefits of our strong operation and cost reduction programs.

At the same time, our full year interest expense remains unchanged at $600,000,000 and our new capital expenditure forecast for 2025 is $1,200,000,000 down slightly from our prior guidance. We are working tirelessly to deliver value to our owners, customers, and crew members, and we remain confident that JEP Forward is the right plan to get us there. We have the team, the strategy, and the runway in place to drive transformational change, and we're already seeing clear, tangible results in our operations, in customer satisfaction, and in our path back to profitability. Thank you. And we will now open it up for questions. Back to you, Abby.

Thank you. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one a second time. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

To be able to take as many questions as possible, we ask that And our first question comes from the line of Dan McKenzie with Seaport Global. Your line is open.

Hey, good morning guys. Great job on the second quarter. A couple of questions here. If I could just start with growth from diminishing AOG starting in 2026. Wondering Wondering if you can just help us size the pace of that growth that we should expect.

And and just related to this, how much larger could JetBlue be today without adding pilot headcount?

Good morning, Dan. Thanks for the question. Given all the puts and takes, with the fleet, when we tried to lay out all the transactions that essentially are delivering us to be able to grow low single digits starting in 2026 through the end of the decade. So we're extremely pleased with the improvement in the AOG forecast, which we will complete and be through by the 2027. And then we've been trying to optimize the rest of the fleet, whether it be retiring the e one nineties, simplifying it by selling the the two XLRs, and then deferring just some some refiles.

So we landed on this low single digit. Obviously, we're willing and able to respond to the macro backdrop over that time frame and increase capacity slightly or decrease capacity to better match, the outlook based on the the demand, environment. So that's the trajectory. Obviously, we're extremely pleased to be able to see the light at the end of the tunnel, in terms of the AOGs because this has been a material headwind on JetBlue. And I do believe that when the macro environment continues to improve, that this will be a tailwind for us.

If I could just ask the pilot question, we we have a sufficient number of group. We've been managing the challenges with AOG through a series of voluntary programs, across both our pilots and our in flight and our airports. And so the benefit of voluntary program is that, because we knew the AOG issue was transient in nature, we will be able to sort of adjust, our staffing levels appropriately as these aircraft come back into service.

Yeah. Very good. Marty, if I could go to JetBlue's 51 partners. I remember when JetBlue first began adding partners, the stat you would share with us all was that, you know, these partnerships were filling the equivalent of of, equivalent of of two to three planes per day. And just wondering, where is that stat today?

And then related to that, you know, is there less international inbound today that you would expect to come back in 2026 and '27? Roughly, how many percentage points of RASM can that increased connectivity typically drive?

Okay. Well, a lot of questions, Dan. Thanks. Let me start with this. We have 51 partners today.

And, you know, we're we we feed in multiple focus cities, and we're really happy with the partner portfolio that we have. Obviously, The United partnership is gonna be very, very important to us, and we're really excited about adding United into the portfolio, not just from a perspective of feed, but also what it's gonna do for TrueBlue, what it does for Paisley, etcetera. So I see a lot of upside on as far as how that goes. It's funny. I remember also the comments about, you know, it fills one airplane, two airplanes.

And I think that was back when there was a lot of skepticism about low cost airlines doing partnerships. Now it seems like everybody's talking about partnerships, including ultra low cost carriers. So I think we sort of don't really look at that way anymore because, you know, our view is this is that's the answer, and it'll be proven that partnerships are very, effective for us. The thing we have going for us is that if you're an international airline that wants access into the interior of the country and you're not a member of SkyTeam, obviously, because you've got, you know, that one SkyTeam airline with a SkyTeam airline with a very good operation in New York and Boston, Like, your best way to get access into the interior US is JetBlue. And I think a lot of our partnerships, a lot of partners, and partnerships are tied to that presence we have in this marketplace.

I will also say, not just adding United to the mix, but we're looking forward to working with Star Alliance partners, who we think will also appreciate the ability to get connectivity into, the East through through New York and Boston. But overall, you know, I feel like there's so many things about the JetBlue model. And, again, I I came here in 2006 the first time. So many things about the JetBlue model that people question when we first did them that are now basically accepted as normal course of business for low cost airlines. And I think it's just another example.

I feel very proud of the partnerships we've done. We love working with the partners that we do, and I see a lot of upside going forward.

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

Hi, thanks so much for the time. I'm just kind of curious, just looking at different the buckets for JetForward, the four priorities, are you able to provide any color about how, you know, as you go from the $1.80 to the $2.90, which of the four buckets, what you expect the contributions to be?

Yeah. I can take that. I think, in general, it's kind of spread evenly across the four the four buckets. I think as you think about the back half of the year, network ramping continues to be a meaningful driver. Most of the change we made in the network were last, q three last year, and they're nicely in ramp, but we've got got a ways to go.

So, you know, pleased with the progress. You know, as we mentioned, we've realized a 180 of EBIT cumulatively, 90,000,000 in one h. We'll see another 110 through the year end for a total of two ninety, by the end of this year. And we have very clear proof points across each one of the priority moves that JetForm is working. You know?

But it is a multiyear plan, it's gonna take some time to realize the full the full benefits of it.

Okay. Great. Thanks. That that's really helpful. And then just as a follow-up, I'm just wondering if you'd mind providing any more color on, just kind of customer trends, like, by the different segments over the course of 2Q and then just quarter to date, what you have kind of on the books, whether by kind of core leisure, VFR, you know, TrueBlue loyalty members, corporates? Thanks again.

Hey, Tom. I'll take that one. Thanks for the question. As far as what we're seeing, a lot of what we're seeing is similar to what we've heard from other airlines in their calls. Definitely doing better for international than domestic.

Definitely doing better for premium versus the basic type customers. So I think we're sort of consistent with what we're seeing. We continue to see good numbers at TrueBlue, and we talked about some of the numbers as far as the growth of credit card, our remuneration. I think overall, the trends are actually good. I think the most important trend, it's one that I give all the credit to our crew members for, is our Net Promoter Score.

You know, the last report we had done for Net Promoter Score, we were at the top of the industry for NPS. And, frankly, we've come a long way in the last three years. So from that perspective, I sort of look at that as sort of the straw that stirs the drink, so to speak, if we can use the baseball analogy. Because without a great customer experience, we can get these customers on board once, but they may not come But I I have great gratitude for our crew members providing just amazing service, so that the customers who do fly JetBlue are really happy and and hopefully come back. And frankly, I'm looking forward to having, you know, our partnership customers, whether United or Lufthansa or whoever ends up being a partner, come to fly JetBlue because, again, I feel like once you try us once, you'll recognize how how much better JetBlue is, and you very much appreciate the JetBlue experience and look for us in the future.

I should mention, you mentioned you asked about business customers. In general, you know, we have year over year, we've taken a pretty big hit to our business customer network because we closed a lot of their business routes we flew at LaGuardia. Notwithstanding, our business revenue is basically flat quarter over sorry year over year for the quarter. So I actually see that as a very good sign.

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

Hey, good morning, everybody. So Marty, a question on JetBlue. Do you have a view on where they fly with their seven daily frequencies? I mean, I'm assuming it's TransCon as opposed to, I don't know, flying to Dulles or something like that from JFK. So if it is transcon flying, have you modeled for that increased competition as part of your overall blue sky estimate?

Hey, Jamie. Thanks. It's Joanna. I'll take that. So as you know, will be illegal for us to discuss with, our partner where they may intend to fly to JFK slots.

So we have not had those conversations, nor do we intend to. You know, obviously, we've made certain assumptions in our model as to what the impact of United flying those swaps may be, and that is included in the value of the of the overall, overall of the overall deal. There's obviously a series of puts and takes. You know, United was obviously interested in the slots, there is an impact to JetBlue if they operate those slots to a variety of different markets. At the same time, selling the JetBlue network over united.com has a very, important revenue benefit for JetBlue.

Likewise, the utility of the TrueBlue program and giving our customers global access. And as you know, we sort of focused our own network on trying to drive scale in the Northeast. This is about trying to get scale to our customers to a global network. And then Paintly, is sort of the real the real upside here, in terms of the unique, opportunity for us to basically provide white label platform for United to sell its non air ancillaries, in the future.

Okay. Perfect. Thanks for the clarification. And then maybe, Marty, this is one for you. And maybe it's too early to ask this question, but you're obviously aware that certain struggling discounters are trying to lean into premium.

I mean, it's more of a leg room exercise really. But in any case, in overlap markets, have any of those new products that have begun being sold by your competitors having any impact on your results?

Hey, Jamie. Great question. And I will tell you, we have seen no impact whatsoever from any of these so called premium products that are competing against us. I think if you look at, you know, our fifteen years of experience or actually twenty years of experience, including even more leg room of premium products. You know, we have great, great credibility with our customers that we can offer great, great premium products.

And, you know, I feel like you can try to do that in a ULCC environment, but I really don't feel like it's kinda come close to what we've been offering for twenty years. So from that perspective, you know, I think I'll I'll I'll paraphrase Harry Truman. When the customer is choosing between a real premium product and a fake premium product, the real one's gonna win. And, fundamentally, that's what we're seeing right now. And, you know, if you look at you know, we just we just went through a recent, announcement of some growth in in Fort Lauderdale where our biggest competitor is ULCC.

And, frankly, I feel like that is a example of how well we are doing in that market. I mean, we really are the only non ULCC option in Fort Lauderdale, and we're very competitive with, you know, with the hub airport down the you know, a couple miles down the beach. But even with all that, I think it's also worth mentioning, bringing us back to JET Forward, we continue to evolve our premium products. We've we we relaunched even more with enhanced customer experience. And, like, most importantly, we went out to domestic first class first class product that's coming out next year.

So even as well as we've done in premium and as well as the revenue results have been, you know, we're not risking our laurels. We'll continue to do more exciting products. We could not be more excited about the domestic first class product. And frankly, I think our timing, is great for it because we're really seeing that you know, I I keep using the phrase the barbell. You know, we get the barbell of, you know, a lot of demand at the bottom and lot of demand at the top, and we are really well positioned to take to capture that demand at the top of the top of the, demand curve.

Thanks. I appreciate that. It actually was some of those Fort Lauderdale ads that you announced that actually got me wondering about it, and, I obviously share your skepticism. So thanks for your answer. Both of you. Take care.

Well, again, I I your your opinion of my fees don't matter. It's the customers and the customers are going with their they're going with their feet, luckily.

It's just refreshing for me to agree with the management on any big meeting days with him. So, yeah, was I just pointing out.

I might let you into the lounge. Maybe we'll let you into the lounge at JFK.

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

Hey, good morning, everyone. If I might follow-up on Dan's earlier question on the capacity growth in 2026 a little bit more. Just how much of that growth is coming from reversals of AOG and even in 2027? I'm I'm just trying to get a sense of just how much of the, at least, the very near term growth in the next couple of years might be highly efficient from a cost perspective.

Yeah. Thanks for the question, Savi. I mean, the majority of the projected growth is driven by the improvements in AOGs. Mean, if you take a step back, our original guidance for this year was that we have mid to high teens number of aircraft on the ground, and we're now trending, you know, lower than, 10 on average for the full year. We believe that this year is the peak.

So as we navigate through 2026, you know, that that will come down over time and and be complete by the end of 2027. I think, you know, one of the major benefits here is gaining some efficiency on on the unit cost growth trajectory. Obviously, we've been pressured in not being able to grow over the last two years. And so this should give us a a level of efficiency on the cost side of the equation. So, again, you know, I'm hopeful that the macro backdrop is gonna continue to improve.

And when that does, this is gonna be a tailwind for us, not not only on the growth side, the cost side, but just from a a true profitability perspective.

Appreciate that. Thanks a lot. And if I might, I I wonder if you could, and I don't know if this question for Marty perhaps, like, just talk a little bit about what you're seeing on the competitive landscape and if, this current environment is is causing any kind of change of behavior and and among any of your competitors.

It's a good question. Right? I mean, honestly, I don't think it was I I I would not call it anything unusual in the competitive landscape right now. You know, the one thing that I would say is we're obviously watching very closely the pull downs we're seeing in the ULCC world, and we've reacted to that with some of the growth reported recently. I think another thing that is important to me on the list is just trying to understand what the the likely trajectory is gonna be of capacity for the industry because I would think we're still not exactly clear what the rest of the year is gonna look like as far as growth rate, and that's obviously gonna be very important as far as understanding what we should expecting for the rest of the year.

But overall, I'm I'm not looking at any significantly sort of noteworthy change in behavior that I would call up. I don't know, Joanne, if you see something like that. But now we're I think we're I think we're, you know, we're we're focused on the changes we're, you know, that we're that we were putting forward in the in original debt forward plan, all the network changes that we went through, and that's we're really sort of heads down on that right now.

And our next question comes from the line of Mike Linenberg with Deutsche Bank. Your line is open.

Good morning, everyone. I want go back to your comment just about this higher mix of close in bookings, this acceleration. Is this temporary? Structural? I sort of think as JetBlue rolls out a first class product next year, I mean, you're probably gonna get you're gonna rebuild your share of corporate.

I mean, are we are we on to something here?

Hi, Mike. Great question. And trust me, it's a question we ask ourselves every single day we look at the booking report, at least since we started to see the strength. I don't think any of us are ready to call this to be a permanent change, and it's one of the reasons why we're relatively cautious as far as our guidance. I do think that based on the the research that we have done, I I do believe a big chunk of it is just consumer sentiment and customers being cautious because of bigger uncertainty with all the stuff going on with, you know, tariffs and who knows what other stuff.

I'm not sure I understand the core drivers of it, but it certainly has the feeling of the I'm gonna wait a while before I make my booking. I think the reason I mentioned that is because we really didn't see it in in April much too much into into any measure. It really was, I would say, May when we started seeing Memorial Day, big bookings pick up. We had a fantastic Memorial Day, much better than forecast, and that really carried into June. But it does have the feeling of people just waited a long time to make the final decisions.

And then when they decided, they just you know, they they they, they made their bookings. But I don't I would not call this something that we're expecting to be a permanent, fixture of a change for, the booking patterns.

Okay. Great. And then just my second, I know, I think, Jenny, you called out the $50,000,000 sort of incremental EBIT because of the United partnership. Was the placeholder amount that you had for partnerships in the original JetForward plan? Just trying to get a total size of the United contribution. Thank you.

Yes. Thanks. Thanks, Mike. Yeah. We haven't broken out the total amount.

As we've said before in JetForward, there's number of puts and takes that were only focused on kind of the contribution of each of the priority moves as a whole. So the 50,000,000 incremental EBIT, that's largely associated with the benefits from Paisley as part of the United partnership, but we haven't broken it out. You should expect kind of full run rate, twenty twenty eight for, for Blue Sky. It takes some time, to implement it, and it will be staged with benefits coming, you know, over the course of the next couple of years.

JetBlue Airways (JBLU) Q2 2025 Earnings Call Transcript

Company Participants