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JBLU's Q2 Loss Narrower Than Expected, Revenues Decline Y/Y
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JetBlue Airways Corporation (JBLU - Free Report) reported second-quarter 2025 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 31 cents. Lower fuel costs aided the bottom line. In the year-ago quarter, JBLU had recorded earnings of 8 cents per share.
Operating revenues of $2.36 billion beat the Zacks Consensus Estimate of $2.29 billion but decreased 3% year over year. Passenger revenues, accounting for the bulk of the top line (95%), declined 3.8% year over year to $2.2 billion. The figure was marginally ahead of our estimate of $2.1 billion. Other revenues rose 8.1% year over year to $177 million, above our estimate of $171.5 million.
Revenue per available seat mile (RASM: a key measure of unit revenues) decreased 1.5% year over year to 14.17 cents. Passenger revenue per available seat mile inched down 2.3% year over year to 13.1 cents. The average fare at JetBlue inched up 0.1% year over year to $218.52. Yield per passenger mile increased 0.2% year over year.
Consolidated traffic (measured in revenue passenger miles) declined 4% year over year. Capacity (measured in available seat miles) dropped 1.5% year over year. Consolidated load factor (percentage of seats filled by passengers) fell 2.1 percentage points to 81.9% as the traffic decline was more than the capacity reduction. Our estimate for load factor was 85.1%.
Total operating costs (on a reported basis) declined 0.9% year over year to $2.35 billion. Expenses on salaries, wages and benefits increased 8.5% year over year. Expenses on aircraft fuel declined 19.4% year over year.
The average fuel price per gallon (including related taxes) was $2.4, down 16.2% year over year. JBLU’s operating expenses per available seat mile (“CASM”) inched up 0.6% year over year. Excluding fuel, CASM rose 6% to 10.86 cents.
JBLU’s Outlook
For third-quarter 2025, capacity is anticipated to either decline by 1% or increase by up to 2%. CASM, excluding fuel and special items, is predicted to climb 4-6%. Capital expenditures are expected to be roughly $375 million. RASM is forecasted to decline in the 2-6% band from third-quarter 2024 actuals. The average fuel cost per gallon is estimated to be between $2.5 and $2.65.
For 2025, capital expenditures are expected to be roughly $1.2 billion. Interest expenses are projected to be around $600 million. CASM, excluding fuel and special items, is predicted to climb 5-7%. Capacity is anticipated to decline in the 0.5-2.5% band.
Q2 Performance of Other Airline Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2025 earnings (excluding $1.17 from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.
Revenues in the June-end quarter were $16.65 billion, which beat the Zacks Consensus Estimate of $16.2 billion. However, revenues decreased marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion.
United Airlines’ (UAL - Free Report) second-quarter 2025 EPS (excluding 90 cents from non-recurring items) of $3.87 beat the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure was within the guided range of $3.25-$4.25 per share.
Operating revenues of $15.2 billion missed the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.
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JBLU's Q2 Loss Narrower Than Expected, Revenues Decline Y/Y
JetBlue Airways Corporation (JBLU - Free Report) reported second-quarter 2025 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 31 cents. Lower fuel costs aided the bottom line. In the year-ago quarter, JBLU had recorded earnings of 8 cents per share.
Operating revenues of $2.36 billion beat the Zacks Consensus Estimate of $2.29 billion but decreased 3% year over year. Passenger revenues, accounting for the bulk of the top line (95%), declined 3.8% year over year to $2.2 billion. The figure was marginally ahead of our estimate of $2.1 billion. Other revenues rose 8.1% year over year to $177 million, above our estimate of $171.5 million.
JetBlue Airways Price, Consensus and EPS Surprise
JetBlue Airways price-consensus-eps-surprise-chart | JetBlue Airways Quote
Other Details of JBLU’s Q2 Earnings
Revenue per available seat mile (RASM: a key measure of unit revenues) decreased 1.5% year over year to 14.17 cents. Passenger revenue per available seat mile inched down 2.3% year over year to 13.1 cents. The average fare at JetBlue inched up 0.1% year over year to $218.52. Yield per passenger mile increased 0.2% year over year.
Consolidated traffic (measured in revenue passenger miles) declined 4% year over year. Capacity (measured in available seat miles) dropped 1.5% year over year. Consolidated load factor (percentage of seats filled by passengers) fell 2.1 percentage points to 81.9% as the traffic decline was more than the capacity reduction. Our estimate for load factor was 85.1%.
Total operating costs (on a reported basis) declined 0.9% year over year to $2.35 billion. Expenses on salaries, wages and benefits increased 8.5% year over year. Expenses on aircraft fuel declined 19.4% year over year.
The average fuel price per gallon (including related taxes) was $2.4, down 16.2% year over year. JBLU’s operating expenses per available seat mile (“CASM”) inched up 0.6% year over year. Excluding fuel, CASM rose 6% to 10.86 cents.
JBLU’s Outlook
For third-quarter 2025, capacity is anticipated to either decline by 1% or increase by up to 2%. CASM, excluding fuel and special items, is predicted to climb 4-6%. Capital expenditures are expected to be roughly $375 million. RASM is forecasted to decline in the 2-6% band from third-quarter 2024 actuals. The average fuel cost per gallon is estimated to be between $2.5 and $2.65.
For 2025, capital expenditures are expected to be roughly $1.2 billion. Interest expenses are projected to be around $600 million. CASM, excluding fuel and special items, is predicted to climb 5-7%. Capacity is anticipated to decline in the 0.5-2.5% band.
Q2 Performance of Other Airline Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2025 earnings (excluding $1.17 from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.
Revenues in the June-end quarter were $16.65 billion, which beat the Zacks Consensus Estimate of $16.2 billion. However, revenues decreased marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion.
United Airlines’ (UAL - Free Report) second-quarter 2025 EPS (excluding 90 cents from non-recurring items) of $3.87 beat the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure was within the guided range of $3.25-$4.25 per share.
Operating revenues of $15.2 billion missed the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.
JBLU’s Zacks Rank
Currently, JBLU carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.