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Reuters
29-07-2025
- Business
- Reuters
JetBlue posts smaller-than-expected loss as U.S. demand recovers
July 29 (Reuters) - JetBlue Airways (JBLU.O), opens new tab on Tuesday posted an adjusted loss for the second quarter that was smaller than Wall Street expectations, helped by cost cutting measures and recovering demand for travel in the U.S. Shares of the carrier were up nearly 3% in premarket trading. Over the past month, larger peers Delta (DAL.N), opens new tab and United (UAL.O), opens new tab have signaled that bookings are starting to stabilize, though at lower-than-expected levels, pointing to an uneven recovery. In April, JetBlue joined several major airlines in pulling its 2025 financial forecast, citing uncertainty tied to the Trump administration's sweeping tariff policies and federal spending cuts that weighed on consumer travel. "Demand for air travel improved as the quarter progressed, resulting in significant strength for bookings within 14-days of travel, as well as for peak travel periods," said Marty St. George, JetBlue's president, adding that the momentum continued into July. However, the carrier said it expects third-quarter revenue per available seat mile (RASM), an industry metric commonly known as unit revenue and a proxy for pricing power, to decline between 2% and 6%. It also reinstated its 2025 unit cost forecast and expects it to rise between 5% and 7%. The New York-based airline said unit revenue during the second quarter - a proxy for pricing power - declined 1.5%, which exceeded previous guidance. The carrier reported an adjusted loss of 16 cents per share for the quarter ended June 30, compared to analysts' estimate of a loss of 33 cents apiece. Operating revenue was $2.18 billion. Analysts, on average, were expecting $2.28 billion, as per data compiled by LSEG. The carrier said it expects to return to growth in 2026 in part due to an improved impact from ongoing inspections of RTX's (RTX.N), opens new tab Pratt & Whitney Geared Turbofan engines. The company now expects fewer than 10 grounded aircraft in 2025 down from mid-to-high teens.
USA Today
17-06-2025
- Business
- USA Today
JetBlue to reduce flights, cut costs in response to weak travel demand
JetBlue to reduce flights, cut costs in response to weak travel demand Show Caption Hide Caption United Airlines and JetBlue partner with new 'Blue Sky' frequent flyer program The newly announced Blue Sky partnership between United and JetBlue lets travelers earn miles on both airlines while enhancing preferred services and flight options. Scripps News JetBlue Airways JBLU.O is planning new cost-cutting measures such as reducing flights and parking aircraft, as soft travel demand makes achieving a breakeven operating margin in 2025 "unlikely", according to an internal memo seen by Reuters. The carrier will also look to wind down underperforming routes while focusing on profitable ones, and is reassessing the size and scope of its leadership team, JetBlue CEO Joanna Geraghty said in the memo to employees. JetBlue shares fell 2.5% in morning trading and have lost more than 42% this year. "We're hopeful demand and bookings will rebound, but even a recovery won't fully offset the ground we've lost this year and our path back to profitability will take longer than we'd hoped," Geraghty said. Frequent flyer win: United and JetBlue plan to share miles and status benefits The New York-based airline is facing higher operating costs as ongoing inspections of RTX's RTX.N Pratt & Whitney's Geared Turbofan engines have grounded a number of its aircraft. U.S. airlines are also under pressure from President Donald Trump's trade policies and sweeping tariffs that have fanned economic uncertainty and made Americans conscious about spending on travel. As a result, major U.S. airlines are scaling back capacity ahead of the typically busy summer travel season as they look to protect fares and adapt to weaker demand. "While most airlines are feeling the impact, it's especially frustrating for us, as we had hoped to reach breakeven operating margin this year, which now seems unlikely," JetBlue's Geraghty said. The company had withdrawn its 2025 forecast in April citing a weakening demand environment. JetBlue had earlier revealed plans to defer deliveries of 44 new Airbus jets, cutting planned capital expenditures by about $3 billion between 2025 and 2029. It was also cutting down on some unprofitable routes. The carrier also plans to pause retrofitting six of its Airbus jets and will park them instead, according to the memo. The airline declined to comment on the cost-cut measures, which were first reported by CNBC earlier in the day. Reporting by Shivansh Tiwary in Bengaluru; Editing by Devika Syamnath
