JBLU - Earnings call transcript Q3 2021 | JetBlue Airways Corporation

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Operator

Good morning. My name is Frenzy. I would like to welcome everyone to the JetBlue Airways Third Quarter 2021 Earnings Conference Call.

As a reminder, today's call is being recorded. At this time, all participants are in a listen-only mode. to Investor call go Relations, like JetBlue's to ahead. now of Director Joe would turn over the the I Caiado, please

Joe Caiado

the Officer, subject the us and been reference issued on Robin This are VP investor. All and place Also, our Investors in the are during statements. Thanks morning's thanks the statements forward-looking to Andres to several our to our or release obligation forward-looking the and may are and Alliance. and made call, SEC XXXX we of made materially our about morning discussion Revenue discuss uncertainties Ursula available call Also course Forward-looking certain good and Geraghty, on Please fuel undertake DOJ that financial earnings availability Products. and recent Laurence, filed to this undue Executive may Barry, call. Chief information. call. Financial including the for we release we future differ contained JetBlue.com, discuss statements events. related All risks us of call pricing, presentation actual Sales joining President documents by joining factors will Joanna others, Revenue no earnings non-GAAP of we these to our Clark, most Frenzy, The Scott outcome statements, of the at our of Chief to and Operating quarter XX-K Officer. David among the the and Chief XX-Q most not this measures. York our and Travel and our our results recent from results morning, cause of everyone, only date This President are differ and the with refer as Form call actual for a earnings website Management, a detailed have third should Head Officer, during reliance the materially. COVID-XX results Northeast and JetBlue New risks Q&A lawsuit for and our during more such and filed in our could update those forward-looking of for pandemic, our includes of that those Hurley, Planning, statements Hayes,

turn of to GAAP For the I refer to our tables now of Robin our non-GAAP over the available But to on of measures measures, JetBlue's end copy call a to CEO. Hayes, reconciliation which these website. at the earnings release, please is like would a

Robin Hayes

good Thank morning, you, Joe, and everyone.

As us Manny ops also worked and we and recent have family treasured October to supported being was done help. and engineering the I'd he throughout a XX crew XXXX. joined spirit. and was team of He first close for team beloved almost of always member Orlando's, in for in-flight JetBlue members for his for for And cherished XX:XX:XX] our for been fellow Richard as We lost Oh [inaudible to was in He years. development like has years team Island moment known to ground friend has X our a where our here adventurous for X remember many a Long month. support was City in Joseph to and was Gomez have training the the known member years of Alex JetBlue the pandemic, customers take programs systems Anderson last a a operating. generosity member at was team to as chip his COVID-XX at almost crew-members.

continued truly of and success. for JetBlue members, COVID-XX. our for confidence to members. amazing been family, their our I'd like well-positioned great impacted friends, give and those me fellow that They hearts future all by crew they now who Our customers deliver and to go is to XX,XXX thank out crew to have

of our Slide presentation. to Moving XQ-XX earnings X

demand the accelerate progress new third to affected count, on encouraged the while as that we periods to been earning an has making holiday the steady I'm quarter, peak while environment are again For we demand reported future once we people poised opportunities by adjusted adjust of is believe enhance beyond to CapEx share our per a capitalizing power. the into and by normal. loss And $X.XX.

and that demand XXXX, months a for recovery. we XX characterized towards the As ahead prepare I'm full process for return we as marching look sustained as cost, recovery thrive truly to our agility and believer fares, years JetBlue We're continued planning ahead. positions low our that low has the the business the with retain and in a last profitability superior plan the and to Star. margin our for we unique product firm model, moved

of I'm airline usage transitioning with file customers, X The serve are past With We're ESG We're in executive sustainable our our slide Neste, Fuel achieve investment XXXX, to of compensation and aviation as Preston, Joby Board not tie with of we ahead to TCFD the as by say to went honoring as a the efforts, continues met this partners. of operate fuel development by see quarter. Energy enabled SaaS linked value are well ESG Aviation loan, of our industry SG sustainability to XXXX to fuel and more of approach our to pleased metrics, our our -- JetBlue to pandemic, on Directors. ESG recover and U.S. and strengthening in compensation first the shareholders' initial sustainability recent SASB by pace our and lead executive an also deals ESG to commitment now diversified our our our to airline to taking World our increase turning industry's execute crew engaging aviation multiple add Now World report. a communities, across XX% target of Services. members, validated responsibility aligned we public our they the grow. pleased operation. we we sight lost pipeline, subcommittee ESG to presentation. our diversity Throughout have

to decarbonize industry how to alone. month, XXXX. Transport has committed the a emissions Airlines, a this International Our cannot do net Air by Earlier it achieve X Association we Member responsibility carbon

approach traffic collectively entire These IOTA are see OEMS, organization Following engine and underscore our XXXX. for Transport carbon the global for and and X Group across and to air unparalleled address airports, pleased net targets. industry goal to resolution, collaborative Action is airlines, key aircraft Air advanced challenges adopt we a controllers. the ATAG or X net a and comprised the commitments of ATAG

role up our an most that the risk the well lead diversity which Both programs reports as as the includes released scenario youth industry address our fuel environment, comprehensive of delighted recently on to plan on this with results and focused ever of We've found also sustainability, our can to climate ESG some stem reports, social increasing to corporate analysis our webpage. Relations we're the Investor happy overview a responsibility see fields airline. in competitor play our within are first annual education, the issue. our XX:XX:XX] to be to continuing of impact [inaudible holistic We and and

X. Slide to now Moving

I restore -- are proud commercial, solid process, walk initiatives, earnings the are setting not to levels as XXXX our our of years, we confident of JetBlue setting coming our on network, our were I'm we trajectory goals allocation value could And a efforts. power team's generating for we beyond shareholders -- our long-term stakeholders. to teams cost all be through and As annual more the priorities. and work planning capital over

to the to a build Over the launched our fares pandemic, network achievement U.S. course continued to London of and the long-term strong strategic as a look foundation for quarter, we landed and bringing next in service the the thrilled success. and have moves, just month. We're pursue milestone making, U.K. third years we award-winning even travelers low the in initiatives to more ease entry game-changing forward Atlantic, in for to customers was requirements that to prepares across finally JetBlue's

doing options, a drive which acceleration best the job of Our fantastic industry's out helped including evolution our the expanding this in our team rolling latest fare commercial is initiative, summer. and revenue

Travel in JetBlue And Delivering levels. performance. versus materially -pandemic earnings enhance Our spot subsidiary over XX% Products efforts to recovery. bright a starting in pre remains loyalty our growth revenue

pillar Our talent shape cost is key our a of structure to goal our achieving relentless of work -- our margins. superior

to a We process diligently and are the airline. mitigate cost deep return as external low-cost pressures cost roots our competitive recovery. working maintain tied to the and we'll to our in planning confident a that structure I'm

off our balance deleveraging in paying other by and Cares sheet progress bank Act incremental loans. loan our made we Lastly,

American with of repair greater this and minute like commitment is to balance approach Alliance moving detail our to to our balanced capital stakeholders. And to a Our our to all part in of many the discussing sheet Northeast brings Slide on X. Alliance I'd allocation. spend benefits unwavering Airlines

carriers. our Northeast terms just low note competition our home region, as and the in new a capacity superior York, competition New to in X and at commitment It's low network. to JetBlue to uncertain markets is enabling And no that in by has here in This commitment been our constrained supercharge region. Alliance airline. virtual York a to the Boston, and hometown our and New important lines broad fares expand to steadfast, is historically fares our to products is create dominated

the including of meaningful We here economy broader alliance will stakeholders, in Northeast. and continue and deliver to implement our crew all this customer's owners, important value members, to the our

of which competition committed flights We our the operate to be customers. to of are Together XXX plan will close this Airlines, flown alliance to with to to delivering November, by tremendous XXX daily JetBlue. added fully in we and benefits American

costs new $XXX annual without We're is be flying, members expanded vastly this the crew for charting stronger we huge us, process course a close XXXX guiding ever. you estimated more the very to in to initiatives, and with confident I hiring our consumer to the crisis generate exciting of crew Given firm jobs members result to thank wouldn't alliance. the over that in on emerge otherwise revenue margins I light. created of am with you. than Joanna, growth our grip NEA NEA are as as also from benefits. the enabling network a than and will superior direct is another a this million

Joanna Geraghty

history. the the COVID you patchwork that We stronger our laid also our crew support us industry's the industry, helped crew-members have among who start runway time, travel closures, weather, everything across the quickest customers thank restrictions. challenging and a and another. exacerbated for to continue for by you members, I Robin. summer to felt do the extraordinary will immune foundation At and one our Thanks recognizing by during operational our achieve were you same I a to ramp of not challenges in up most the varying JetBlue,

the out in options was performance slide I'm X.X% which our quarter, stemming from X, XX:XX:XX].. third with our September, to exceptionally revenue most This Turning from pleased early perform initiative, better [inaudible continues guidance fair revenue to our result over expectations. which very our than declined strong largely year recent

We VFR. uptick also the was majority of where That month in was mid-XXs and the our of recovery the mid-September. are pushed rising corporate bookings counts the during renewed right. is and stabilize solid customers which expected vast considering that September benefited leisure variant. with the improving. case -pandemic largely with and in and demand Delta load performance factors simply to trends pre overall summer the level, to the post-Labor tied the in to yield softness from August brunt Day beginning did And back a out July outstanding to said, associated demand this

robust quarter as meaningfully the the revenue holidays approach acceleration to demand and throughout continues expect We improve.

planning For decline the quarter, year revenue X% over XX% and fourth for to X. between we're

a to we business We expect trough be the better capacity holidays meaningfully better and by align the But tactical demand are recovery. exacerbated actions slower with travel performing to challenging, environment. took

on initiatives. revenue a our unique is performance by strong driven execution continued of Our number

Together greatly bringing growth out Northeast routes with This low benefits new be and unleashing American of a for have and American, Airlines our would with possible. Alliance is tremendous alliance about more network enhanced seats launched XX fares, Northeast. is more growth. Maine. Starting the the already we will serve above We're all customers. to schedule, more new new that Our through expand XXXX, to JetBlue's including otherwise expansion New next orleans, destinations. Northeast begin in on Portland to with week, plans and international Savannah, Sarasota at And Jacksonville, added and than XXX we'll year, flights Nashville, our destinations frequencies with including long routes. LaGuardia to we new next XX and awaited not

absence to the who Our region. from has competitor of stand growth dominated provoked the a a benefit in in that response and region carriers have Northeast already in viable competitive the the entrenched most from the the long legacy third

in behavior we every driving we quarter. continues pleased to the view in and a customer product the Validating Our buy refreshed activity X offer fare options of We're our revenue all expectations. called last fares. serve points benefit see back that our offering category outperform at we out to best excess low that

for had lodging Cruise products highest expand revenue, vacation not subsidiary as the are its record in QX. for absolute the vacation to is the Flights JetBlue is These our flight but and travel continues on in me revenue very the And achieve highest on with Paisly its a full product insurance, gaining the by recent quarter launches Our overall And to launch and rentals attraction to powered terms next XXX revenue options by and strong And year of launch run million trends deliver we're rentals. year. only in that of performance EBITDA to Plus keep JetBlue firmly being and driven relative pace car rate well. Bundles This confident we for vacations. including travel of Platform. new team innovate offering, packages, path Paisley recent additional on

fully a enhance our continue are loyalty we material and accelerate program perspective, Lastly, having From that on nearly program revenue rates level growth impact a our grow to pre continue performance. and to -pandemic are teams recovered,

give end introduced the American expand considered on to effort creates might which to that our Americans, our point many phase For million-plus customers, JetBlue of add otherwise benefits currency. opportunity This far, and Thus elite a on we we've and both well as, the both airlines, benefits customers TrueBlue benefits. a XX members, are multiyear new of Xst value option loyalty JetBlue. front earn as for reciprocal Advantage not of have to

personalized transforming TrueBlue our for to offering customers. coming enhancements TrueBlue out as experiences well platform. we our could I of in the for members, Over the be month, Mosaic space. are in this the Ultimately, roll more about excited we plan not as and process future

quarter, declined Turning to our flown third X% capacity on Slide the XX. In year-over-two. capacity

For between is to has and the a to in decline Corporate and leisure fourth pushed currently to which trending travel X% seasonal historically accounted is XX% back. year-over-two, XX%. given our assumption our pullback for that XXXX, planning travel, X% capacity the X% of demand been quarter for closer revenue approximately corporate of recovery

And a recover travel it improving even which While is the recovery has recovered We're optimistic been remain for of in delayed, new this to more this winter. recovery, week. significantly robustly segment each levels. XXXX approximately highs third we hitting corporate the is

the Over the share to the of we greater coming us years, capture a allow travel Northeast. corporate expect in NDA will

underpin will tied the we performance. pandemic. of demand adjusting and and VFR nimble strong our future always, demand volatility course As the to continues to remain leisure to

the sensibly end, regarding bookings the carry a the U.K. to announcement from and relaxed by November have increase of pleased and designed travel from customers To beyond. we geography. is travel network more the for step change point-of-sale between that we In than the and authorities U.S. the Our saw reopening corridor, for leisure week to that five-fold high-value restrictions administration's following U.K. the are travel

As continue through we and to areas be will strength. demand recovery, move deploying to the we nimble of capacity

one relevance we our success. customers our long-term will assets. Our build cities across focus network and And achieve of continue is our to serve greatest to

the gratitude close we us. a from dedication NEA their to navigate upside the meaningfully faced team. I'll have to to and challenges have thrilled members, expressing enabled by professionalism new of my as are all us utmost We ahead crew of our

excited With to XXXX rebuild as and beyond. earnings you, for restore that margins we ever over our We as Ursula. our are in as future, and

Ursula Hurley

thank and their also members I'd from JetBlue commitment Joanna. like foundation hard for a in crew to crisis. work Thank our building to incredible ensure solid you, emerges the

airline. stronger a As

our XX.X to Our the over $X.XX. a overview our available CASM teams ultimately for Revenue adjusted groundwork to $X financial seat per of X.X EBITDA billion earnings over was was I'll share year long-term to mile was down the per our was $XXX million, to create to XX lay percent percent up financial brief share x down was value on through per and process for with results success continue X.X GAAP over fuel planning and $X.XX, return and start to owners. percent year was Adjusted XXXX quarter. cost year loss slide

a recorded million JetBlue also our $XX We gain investments from through Tech Ventures.

the very Going And mark-to-market in August to we revenue options adjustments forward, both early gains of was July above largely quarter in and non-GAAP our and adjusted ranges and we that performance but than were exclude best the in will third results. bookings, drove other of end revenue This expected expected. to the came record pre which pickup driven and the high We from quarter EBITDA income, both as and a have in September profitability -tax mid these results September. by in expect of stronger expected losses achieve equity fare our investments pleased those third our reported. in

estimate positive fourth to between our decrease from fuel prices. leisure the to due million. in pattern quarter, seasonal pressure is EBITDA will the XX demand sequential and range the we material spike recent million For negative This $XX

well due XX, worked Turning manage summer the the our peak complexities to this operational Slide travel ramp exceptionally period. to for -up teams swift to

and have and superior ahead, we We'll done charting we we margins laser pandemic. capacity, maintain a focus a managing the course cost sustained throughout in approach believe look As are through we for flexible nimble profitability control. on a as

of through prior within in This we for identified August call exhausted to in and payroll that staffing increased quarter's to headwinds and operation. quarter, million persist year-end. $XXX benefit PSPX X we reflects a points previously last expect third the from our we which of ex-fuel temporary year-over-two ensure CASM appropriate X, approximately a levels approximately excludes summer XX.X% During our the range assumptions of

the year offset assumption For leisure headwinds the to is demand our trough by CASM ex-fuel is quarter, tied the in trajectory. partially XX% increase short-term of largely to from includes pressure lower to over sequential for underlying to XX% fourth costs period, capacity for temporary planning increase our The again, which a between function recovery. improvement unit

to efficiencies members the to meaningful expect in XXXX ramp welcome we achieve operation. new as We crew and productivity continue into

and long-term improve XX, we to mitigate to invest near-term diligently Moving cost pressures in Slide facing continue our the and the teams as are we to -structure business work our our earnings power. restore

We in of XXXX growth improve XXXX from single-digit ex-fuel versus low half to continue in rate the to CASM a second levels. to double-digit expect growth XXXX

the of We today, are planning and next thick year. in of like share an our early our cost I'd annual cycle to trajectory view

of We in halves, half performance as to expect ramps. XXXX two the assuming a recovery a story be stronger second the

CASM through inflecting assumptions the in due capacity remain of to year half lower expect the next ex latter elevated the We to year. before of half first

normalize As our start elevated into and the expect enter recovery inflationary landing benefits we accelerates, parse wide to for productivity to seeing fees prize rents mitigate from pressures.

business to amount In deferred our investing up throughout catching we NEA and addition, pandemic. the we plan significant recovers margin the travel maintenance work of as continue on in accretive

of superior long our to about goals.We process, our generating committed planning are initiatives cost cost completion margins we achieve low for help the the and Following that keeping will our us will term. share more our fully

the quarter, the And take delivery fourth In end Moving at stood X expect aircraft aircraft's quarter. we of took of delivery XXX we AXXX and of X September. the X at during AXXXLR. third additional to The Slide to fleet XX.

cash. CapEx at for which of aircraft with XXXX approximately which pay remains unchanged forecast $X The intend CapEx, to billion. full-year Our we is majority

XX. XX% a we At liquidity with investments short-term of liquidity and Turning to XXXX of maintained billion on the Slide $X.X sheet revenue. or the cash position and September, strong of unrestricted end balance

inclusive attractive And balance to $X.X if of around the liquidity expect raise revolver. necessary. medium-term, the rates minimum maintain at billion believe We we of in have ability to we our a cash

pillar Our our service asset delever remains our our recovery. in commitment to unencumbered debt a our grow sheet, balance base and key lower obligations,

bank take $XXX of of debt. have Year-to-date, the approximately a paying million by we to debt. we quarter, repaid loan an approximately a $X.X in of down we to sheet million XXXX. And result, CARES the balance annual our $XXX and action $XX During Act billion repair total continue have third reduced a million our interest by as incremental expense

cost Our net average weighted pre levels. -pandemic remain of and debt below

the our from end the ratios While at decrease stood of prior at September. slight debt-to-cap XX% A quarter.

grew $XXX our during by third quarter. addition, million approximately In base unencumbered asset the

make our credit extremely in investment-grade to sheet returning continue progress balance metrics. We to good

targets, Looking balance all to relatively critical inspiring ahead, industry. thank balanced in take we helping period we our to plan help towards challenging I'll our the you role you are of the to navigate will best crew-members close ranks among with another our a sheet history. approach to They the capital to creating maintain enabled playing on to we financial positioning allocation believe by stakeholders. to our JetBlue achieve which the a for Frenzy. in now exit Over questions. our value most a your in crisis With path that, strong for

Operator

[Operator participants a a on Instructions] from of Raymond comes question from Savi James. telephone Syth the reminder, And to star as first line you. ask press to question, Your will Thank your you X need

is now line open. Your

Savi Syth

I - structural below be good to cost Covid, unit should everyone. lower XXXX morning you I to I costs, XXXX. it 'XX. program, with you look at Hey, half second view about Ursula points believe pre the X second think, than maybe X that half of looking the be if were kind may If

you the on that, headwinds X points of several have So NEA. top including now from to X

or nets hadn't when identified of from that maybe January it level single-digit cost maybe versus that guide with to you a XXXX it perhaps second executed half how which much to and that back came in out is structural the capacity have in you To growth XXXX, out how of initiatives is you get much inflation, more XXXX? coming hadn't of elevated maintenance in best-case You and XXXX pressure scenario. low XXXX, below

Ursula Hurley

delivering key cost. for superior much morning, you are so that in Thank laser-focused the Good question. on success Savi. reiterate margins. And I we our costs the or to want to acknowledge

sustained gains, through through to which volume the which mitigate as Our as cycling well we investments is in way singular the going headwinds, partners cost leverage, the And benefits capacity events, we're those achieved which carry we operating of prior focus your COVID. to as the spend, the to in in see achieved to costs that continue maintenance we we're optimizing our through ADA, mitigating will that productivity ensuring we highlighted, our point, fixed structural bring business XXXX to on XXXX. the back,

I CASM look the year, next As a that ex-fuel achieve single-digit provided. at confident have to low extremely that we I'm guidance we path

Savi Syth

Got it. That's helpful. excess year - And the if I might mentioned a -to-year quick in follow-up points up buy to over to X revenue Joanna, you in had XQ. of

if wondering on over revenue expect Just provide progress some or -- maybe could the color of from initiatives other you the year you the from and magnitude X. contributions the next the

Joanna Geraghty

sure. them each through feel in, miss Savi anything. the of to I'll add walk one additional Clark, color Thanks, for question. if start I Dave free Yeah,

products of we at fare view compete strong recall, the absolutely we delivered on So goal on top There's the clearly the Fare marketplace customer. then and iteration pretty this Options price than think way deliver our points. initiatives. category, less year, of these year best defined and XXXX and low ago. a we X of a launched products with in I is business sort we expected. that has the how are Options X.X, a in the we're them this, sit every It's a what of Fare to what latest segment advantage JetBlue return the as recovery of revenue looking taking of being leisure about unique being both

just earnings now RASM exceeding overall X. with incredibly we we're closer X, X benefit. about originally in to had and So call to the a performance that we're We pleased the point adjusted last anticipated

the more how in are The think customers optimize more in both performance, the by So frankly X piece customer other their mentioned ability peaks behavior I that greater and have is, great more think and the checking to the time and the engage performance the continued things with was learn throughout follow improved frame. we they and I options, we And year just are team. up-sell, bags. driving off-peak as

the what the terms of that's of in seeing on side So you're options fare loyalty. house

the is second from a with deal. purely It economics last four no That's change quarter. associated of of The RASM. initiatives, the point co-brand

you additional as focus we have to opportunity access from really others credit you these Airlines. we Paisly not have, opportunity have could we from we on but may don't that as in hotels, plus benefits growth and least about of I as we we of JetBlue, program next 'XX. to our JTP, of the underserved EBIT that XXXX mentioned, see last the the and about about and who think, think making excursions, then program. strategy. incremental as overall from Paisly. hundred then whether finally flights, customers serving And of see of a of Xrd into the think that's the on benefit some book ways a with NEA year. great offering American So there. crews top the X, organic think is Barry We're then million same evolving coming NEA. we And that delivering progress, loyalty, now growth mentioned, some tremendous travel on on certainly should Andres unique DE&I cars, We as segments trips the to And the team, the that a of partnership and focus his

some XXXX, continued the the more about, with said, this greater benefits you confident otherwise there other of had, relevance. into corporate excited service. we've we're with third opportunities come of around bring count competitor viable as that to as We tremendous or this loyalty, JetBlue particularly carriers recovery for have to we it's going that is travel. see unlocks in a routes, geography the Whether this, be industry will accretive the through our not move business Codeshare, with mean, This landscape more better well, here would will margin That large the are lower competitive I we're and play announcements fares, we to seats, growth region, think leisure I which a that across very of it merge-joint sales.

X We're we the the behind really initiatives. those. are those excited So momentum about have

factor You XXXX a and be the in environment for demand revenue to up with year shape good should the us. on improving that side

Savi Syth

JBT And the where Sorry. is today?

Joanna Geraghty

but is We haven't on EBITDA. end journey, a it Through of indicated today. confident we're the It's 'XX. hit very a of where it XXX will million

Savi Syth

it. Got thank you. Alright,

Operator

comes question from O'Brien Goldman next the Sachs. from of Catherine Your line

now line is Your open.

Catherine O'brien

Hey, morning, good everyone.

of out industry network over challenged in due have do, also would one your with out the if also your of growth what Transatlantic, in agree your the next able I your to guess competitors be you strength that up you seems to speeding know you But been couple recent to Thanks. call expansion? So competitors Transatlantic -- they I seeing. you one called you with that we've Are domestic that the had consider first, the of portfolio? current capacity expect do and years. more international line

Joanna Geraghty

November well but we That's Xth. the will could we're so what we at happened like restriction, around Sure. of very give sort you more Maybe up seeing I timed ramping launch, but start a that jumps nicely. travel Transatlantic factors time. with a it, first for the Frankly, incredibly timed after X-XX that there, little change have insight. and bit take it in the credit XX%, not with I'd better Both to

product, you've there. overpriced are And we a fantastic low any the excited best, fantastic in absolutely at really read bringing of we're about doing what do market. and product reviews doing historically If fare a what better we service,

and Transatlantic. future that's and are next And on we're in of priorities our opportunities London where there, Boston summer. growth terms of York New In terms focused

about As domestic you domestic we're think the quite on the landscape. bullish landscape,

initiatives. We have of a set revenue unique

carrier. well, strong is brings, think going to we do us leisure, not recovery. is is that recovery doing. continues on are as looking we're are largely be We It frankly what for and others good, but -- we Leisure pivoting you gravy the look are well-positioned on to for are do. organically said, are next so business the peaks That Transatlantic born year and we NEA are what strong, Boston, the VFR strictly We fuel do out it to of we of holidays well. talking already top leisure is as this what at side -- we side. also about what excited leisure we're do. just the what delivering what we're a about The That both remains the

Catherine O'brien

Okay. represents XQ share that XX% and I and with NEA And or thoughts on just XX% seasonally. the I'm the into total. Any it's corporate go lower X you guess, represent I as Thanks accounts varies parts. about percentage Northeast in past for that investment the know the a guessing I'm revenue. greater revenue early and some might XQ thoughts to in with that total of where that could maybe XQ, new drag XQ break sticking of of on any in guessing Great. revenue. versus perhaps then the time. X,

Joanna Geraghty

XX% Our the the of course In to corporate overall year revenue. over travel it about of moves up typically represents our fall, the XX%.

opportunity emphasize X% only JetBlue leisure so revenue competitor we're this also pleased the with bigger there. piece about a We're relevant the all it's about joint set of thinking from Atlantic leisure not better you sales. on is give again, got good I a partnerships, side. range joint corporate the opportunity, Americans be But but corporate and XX%. of more think travel for also do around If they're ' airlines well. very but us how the customers, want NEA. look able a Anywhere very opportunity definitely the on excited making accounts, We're it, about access to announced that the NEA Mid things we'll there's into business routes to opportunities the to for to whole South, of at far so the about other loyalty, does the as much between XX% tremendous corporates much XX% player of opportunity Denver in and we a corporate there's tremendous network, piece We've region this NEA frankly

Catherine O'brien

so much the for thanks Great, color.

Operator

comes from from line Your next the Duane of ISI. Pfennigwerth question Evercore

now Your open. line is

Duane Pfennigwerth

Okay, thanks.

of recovery I EXXXs. in the Just EXXXs on you if profile we're ultimate have fleet by like in the What don't are percent how on the us quarter? first and high restored the Can type. you quarter margin And know level know fourth seeing any maybe let now? thoughts they

Joanna Geraghty

that? take to want you Scott,

Scott Laurence

Yes, for the take I question. Thanks can that.

Scott Laurence

out we'll -- flying. but first the The of flying comes of is fleet and is are that, of as a out EXXXs the of couple out be entirely XX. things, storage November

ramp its some of haul that NEA. pre think on I and serving In the mean, Boston, particularly terms as we the purpose airplane, a we -COVID. flying again, and in -- rest profile the shorter had obviously maintenance we good up versus of I it's on EXXX headwinds and very the as focus

have think to -- because Again, that queue can we airplane NEA the profile the while we missions a of producing think that that fleet bit I opportunity. -- a in we're longer see on. again, the of that it given flight I So position we

Robin Hayes

Duane, is The well-being. thing spot. to morning on it's I that build Good only sculpt

higher generation learned schedule, pick during over mission it well, years flying really COVID, pivot we've the back as of for the we pivot think to think what we've flying we type plan frequency, certainly shorter been cash I where as stages that purposes. we any can it were really to it to perform with I back where

we good one I drive for also contribute think and feel the margin. the to ability to mine really about

Duane Pfennigwerth

then to stay the go you of that question. very appreciate this and client costs in headwinds and anticipate, and makes away storage a maybe back this just cost do that's go being into next Everything about does these just the and you the I more If year, go those thoughts. And not go Thanks. related XXXs lot fleet-type Thank do a NEA on your you. if way been that York, relevant you've to way transparent the it certainly here anticipate you've New doesn't just sense. about said fleet-type. into

Robin Hayes

saying very I by -- New things the the we that the When to us be that one to JetBlue's the expect lack question. are even just years, limit the York. the Duane, over ability at you look of appreciate extremely limited answer I Obviously, NEA that confident the of grow me start successful. will L don't P&

some credit relevant that And -- where heavily has market things margins won't reason I a most good a more card industry things made think build to we a might that NEA we've relevant, There's always TrueBlue to more see York successful. observers a people no too. more -- those believe reason I'm that the of the we All the -- giving JetBlue up most really in Joanna to to not talked said And network. the I everything around New think about, bigger, been that any and get program. struggled. be allowing engage having flow others have from

dodge don't However, to I question. want your

whether fact in original X about less it at airport. we wrong to came higher-cost it set that some course, And I come that look While cost flying have IPO of if see we're to the the which that we the for NEA if out, I the you doesn't reflects down, will slots slots exposure reduce mean, of additional assume the no airports. flying, that guide if would as simply longer those XX be what flying to have the would X that? be and plan will we of more happen, in really a flying So, really the the beyond and be high-cost say would relates CASM you cost in the them X was we X keeping

very were costs of don't it'll be. was and everything some NEA about that believe do But purpose I'll confident those if will DOJ the out. were straightforward the please that the successful, we which reason be what-if will. relatively we I or planning, if be for it successful to if the But then, we're they say again, believe they back incredibly So will wrong

Duane Pfennigwerth

Okay. Very clear. Thank you.

Operator

Your the McKenzie line next Seaport from Dan question Global. of comes from

open. now Your line is

Dan McKenzie

Hey, thanks. guys. Good morning,

earnings superior guess couple the questions long for shared I term. of script, a the guys that things and restoring power going margins a to Just you back here. few beyond XXXX

that JetBlue to pretty to year better I go was the if a that transition year XXXX. clear on So XXXX, way was back a

So what guys for have wondering plan think XXXX I steady-state. is, I'm saying business that, guess, here you really you you versus better a margins

Robin Hayes

that? Ursula, you take want to

Ursula Hurley

Sure. Good morning, Dan.

would currently power pillar our were ex-fuel unit long-term powerful to on when of superior the it's our you that remind revenue as you cost pre long-term. expand in trajectory margins GAAP Dan, track drive with we XXXX. commitment referenced, - business significantly to COVID. CASM to commitment, to flat in outperforming and that expectations margins over are and CASM opportunities couple model. a meaningful we a were versus So on ex-fuel a deliver We our XXXX. cost costs are peers path to deliver and earnings cost record We vital And deliver that I unique flattish exceeded formula over the and restore our And flat the performance closed all us

Dan McKenzie

Okay, reinstating back around when versus I And it from travel historically. just got wondering timing historically, XX% the tied revenue an coming of is corporate Is just XX% if corporate you've heard returns? it. visibility of the to I'm of to for wondering the earlier I'm guess -- And to correctly, then the it's to margins about the resistance lack reported going that if XXXX? travel I an that question, that outlook XX%

Joanna Geraghty

No. No.

Let me be clear.

of XXXX the more XX% was the The fall. in of plan on So because on corporate percent revenue obviously XX. average, our corporate fall contribution about

on opportunity travels. is on corporate drive we corporate because industry and potential NEA, XX% the signage As look industry obviously the more average the that with about at the will JetBlue

XX at for with NEA. lives, we're between that opportunity somewhere the XX So the their the industries JetBlue

Dan Mc Kenzie

Okay. Thanks time for the guys. you

Operator

Your Conor next question MKM comes of from Cunningham Partners. from the line

now Your open. line is

Conor Cunningham

Hi, everyone.

You're calling points transitory X pressures. of out cost

of wage stickier changed And our confidence from you environment in we it end or now like Just what the ask of just rates well, to planning the on hiring XXXX? has how inflationary gives you this costs many is, until Or way XXXX? as about that how to people late? maybe the want labor are

Ursula Hurley

labor you Thank get the and have up highlighted Yeah. the that longer-term that longer-term headwinds into Good short-term essentially challenges, ramp are both your longer we will believe point, morning, term short-term able we seeing. to to efficiencies, offset Connor. We'll the question. to On in productivity going for To labor regards networks which pressures a hiring. we be the as inflationary sets And mitigated we norm. drive those we're believe new

to cover the I normalizes, long drive a throughout be the We're quicker for ensure the paid those we anticipated network summer, year, we'll was obviously -- recovery to to next term. and once occurred preparation mentioned, need the that the as so there much efficiencies we appropriately operation. had entered we in over able originally productivity than hiring So

Conor Cunningham

just on the And maybe Okay. EXXXs. then piggyback to question Duane's around

So, and XXXX capacity And to sense about does with your again. that much for I'm on SPAC, just parts side the away get the that side the equation a is thanks if I'm tied cost the plan on EXXX? just and of the how obviously the capacity just moving go to curious both NEA? trying of basically

Ursula Hurley

want you that? take to Scott,

Scott Laurence

NEA of is mean, so I that. I that are generate those into would fly I'll contributors, going the about just They tend capacity, capacity to Yeah, a grab look shorter at Scott, big X/X rights of not lot X you airports our represented are right if it to ASM is this they try What highlight because don't the EXXXs involved.

Scott Laurence

just to to forward XXX we limited able stages, the upon XXXX, on be to LaGuardia, Boston like traditionally and, flying restore obviously, to things into access. is that some that they've haven't The seats. got move the been airplane stage we all continue a high we frequencies, as of that as based somewhat going frequency

not You the probably concept significant. going is what you look and we on -- the ASM guess be that generation if at I that is touched it's there got earlier, of to to associated --

Robin Hayes

a If add true. though capacity, probably to that's I can do from very think that I

what what NEA. per account If you pre in in and New Boston New pre day you we growth some take then were flying post think into additional we'd York NEA, And in NEA. about flying be York

a an You're of talking day. XXX departures excess a probably

Additionally, because the NEA. of

spreads. of disruptive markets short suffered the very so a It fares these on all effect And high traditionally the because well, from has that are they some low stages.

to that ASM. our total X capacity pre -COVID so whilst significant, in X in not of a you XXXX, of the those one view, from it's may was remember And about X% of think terms I point capacity line

of York. You'll out is of of because see allow New to number day a the just impact has offer flights significant it the us additional

Conor Cunningham

color. the Appreciate Great.

Operator

of the line Helane Becker Your next Cowen. question comes of from

now line Your open. is

Helane Becker

don't areas you strong Operator. had the on Thank Haiti. Thanks is one everybody. We much, know for issues Caribbean. some what's if in were the give you you're you can -- year. of that perspective a the fourth and quarter are time. they very that Hi, earlier going quarter this To thinking Puerto in strong in Wondering I update really VFR market into just from about on an how us how given Rico. first

Joanna Geraghty

with I'll will being had deeper let things happening. situation, fares year higher the Hey, VFR specifically, a Helane. they've and Thanks dig for top-line, loads variety has performed its good a despite We've pressure rough tough some the a a I little know get performance pleased to Dave question. of Haiti, I on the very very there with throughout into period. on quarter. well industry got holiday capacity. We're obviously

overall, on So a do color VFR holding give little well. to David, want specifically Haiti? you up

David Clark

over our region, year in to growth. highest the overall America QX, strongest Latin revenue revenue Caribbean, the had was just region performing And Sure.

as you it strong, is If look traffic Joanna also too. a but mentioned quite we and VFR leisure performing quite saw at well, the lot of portfolio demand a as

them. nicely. of spot look yes, the to customers being challenging the for doing and Haiti one spots, well very vacations, hits outdoor As some overall activities Caribbean outdoor And

it, to a has point strong as our region work been the continue a but We through for whole network.

Helane Becker

as that, going That this and and with I'm know to LaGuardia you not then like And delays, to specifically, think fraught you mean was just about JFK is weather guys adding question mean, New very helpful, ATC as jerk a well, I apologize. as my capacity -- area today. thanks. you've York, got, it I be other to I'm don't going about on

mean around you about said, lagging it to keep to about will not excess I So getting capacity to cause that in excess, -- jerk wait. the on the operation part, for this that extra, like And a delays all think the maybe I from how your them getting area don't do be

Joanna Geraghty

locations live absence lot when good have about talked of visit northeast between done protect done it with job a great meaningful that's well. a Northeast, to area reform want we've here the got New fly have across in who. think There's in to, that lot and we navigating other operation to system wan other to Listen carriers do do a number we here here. the as through. we New a lot have that out-and-backs well. to particularly think people that level exceptionally geography. I No, have here worry there's from as we of specific we haven't you And of how we flights and a it that York try the is people Celine. days. high-value there's model Rest And focused out up very ensure on stability a of NextGen to a of greater I of disruptive operating aerospace a We've in the an frankly, team best can, the unique the how York tried operate set assured

seeing a trying as I does it'll I we constrained think growth circumstances. the out incremental you're flights it's because region incremental the have number is as but industry job much point whole, JFK. JetBlue team be that I same in but necessarily you're of will actually region, flights, incremental net really in does, as out mean the to seeing our lot that great the really neutral LaGuardia a the and so not

we that's and flights want want what go, still focus to it we leisure, having JetBlue is And getting that's JetBlue flying that they we complex prioritize. market. customers what to do customers see they do know they recognize well, You on because this to a and where we in completing

Helane Becker

Thanks, you much. helpful. Thank usually Have That's everybody. a nice day. very

Operator

question comes J.P. from line Morgan. Baker of of Jamie the next Your

is open. line now Your

Jamie Baker

more London build in times, question the you to intend but what then Robin, broadly, on morning, worked a U.S. how market. I there? do Good different here know I and everybody. well different guess brand Europe a

Robin Hayes

Jamie, I know -- guess as look fair. be -- you have that's Well, that pegged guy, London I I I'll I do because very

Jamie Baker

it What gave away.

Robin Hayes

we plan Look, that. to exactly. Yeah, have a do whole

split And wait some U.K. got our XX:XX:XX] of point-of-sale already steady-state. case, share much close we the -- of And was can wanted coming We UK it's the will got promote even think open. to the [inaudible very of I business whilst between have you, creative I pleased is We -- we expected that what and -- until it we think doing yes, the be to ways our -- ahead much we out sort to I low-cost point-of-sale routes. stay of extremely we how tell as it, had too significantly where really the haven't I'm U.K. to done to of

is call we're core clearly differently is of continue it restoring course, the is amount that a BBC. to free are and So transatlantic we've much and it XX:XX:XX] what -- media we're food free glory TV, core of doing think [inaudible well, Wi coat the of there significant more days with offering flying service, understood over good a premium we had I of through service, decent premium that accessible of some Fi - very and and, fares coach, that our including which

Jamie Baker

to picture either JetBlue industry? X or risk drive pandemic or Thanks, And think I'm years, extent theme, isn't capacity, do you Robin. goes a what wrong, themes, this helpful. that? the labor ultimately to over or the That's looking question. in what And the then X big the the for do second is modeling next structural those cycle biggest all industry X a risk, think would next ESG, well, you it

Robin Hayes

Now, you UK I to having doing know, when of why much I area of talk And to into I believe this really truly and been we're space and really challenge you of to so with is sustainability. the to and as going done I've influenced how think this discussions is, the think COVID, some well the planning been both has of think time. I've we've at the European airline which big and about U.S. think Trade thing AXA, thinking pleasantly, in of started industry Association relatively airlines picture around lot a how the been happy in short positioning I it responded how talk was IR. that

or reduce know, that our if do care percentage an carbon we the we target other carbon bigger us other, who from we today. want--we Because doing and to come want emissions we we're the people of if sectors footprint. are will on fly to to can aviation climb back. about that that on everything You X% about we environment And even going have not as don't, our do know X%

So that's to. the risk biggest point macro macro -- that I risk the think that's would I

Jamie Baker

Robin you, Thank care. Very Okay. team. helpful. Take and

Robin Hayes

Thank you.

Operator

from comes line of the question America. of Bank Didora next of Your Andrew

line Your open. is now

Andrew Didora

of cost had can hard of a model maybe, and Personal Because we the next go that a everyone. to leverage back of having morning, CASM Good Hi, cost to kind finding in line back drive in my down minute? I'm year. for a half time the lot

next in to get give estimates any first question, 'XX capacity in us kind the back you of looking cost you're maybe, on And rough So can that of been assuming the I've half what opposed to level. XXXX in in pandemic, than X, more your at I basis. line any will look on be absolute And lower were you in they as items there at to that an do basis year, ASM be XXXX. cost will think when structure

Ursula Hurley

question. for Andrew. that morning, Thanks Good

on we to next capacity that So up and through in XXXX, envision of do the we're expecting shape the as year, we so versus the depending we recovery. progressively full-year year, up regards to XXXX navigate the ramp expect capacity be to that level

we we'll the margins and drive to acknowledge, as and in So capacity our put terms ground profitability. so we in basically fluid a level stake environment, live in a of

so point getting yet some see to to still new and we operation come to setted starting it is the in think the because still we're norm, overarching level is I I a is hasn't down. through more settled you not normalization. that very we're can fluid comment efficiencies in What are

point year, less it's we're had, you volatility, X. we we as level with decreasing and X is it's had if previously to getting fruition increase Capacity So CASM sequential COVID. more see are efficiencies been to to throughout look a and back, normal cost QX that at meaning, capacity comes mapped so a this of QX to starting coming

productivity. to first look network be next That essential we as navigate is normalizes it the through us into year, our and drive optimized, levers I cost hiring to is to year. is gain the As foremost have as efficiencies we the pulled meaningful and for

right need we the navigate stone now took reiterate, you, tell fixed process going XXXX. the I'll If through sustained we unturned. is XXXX we going Stackin, as that can XXXX ensure planning think through out to I costs or of we're and no I

feel order single-digit got in to achieve I pull that the levers confident year. we've ex-fuel extremely So, low to commitment CASM next

Andrew Didora

And then from one short me. follow-up

going in London from be year? tailwind that to you terms In the next quantify what flying, is the CASM can of

Joanna Geraghty

de just of take you ASM's, It's Yeah, percent. this is a that. I it's sense mean, to London's than I'll currently half Joanna. minimis. give less the a contributing,

de So minimis.

Andrew Didora

Yeah.

thank Okay, you.

Operator

the Your of question comes now line line Stanley.Your Morgan Ravi next of open. from Shanker is

Ravi Shanker

Morning Thanks. everyone.

follow-ups. couple a Just of

you on looking be dead?. the is strong, said that you I'm think I really it.?Apologies call not but holiday sure quantified travel to if

sense could is what us like tracking If just of travel versus holiday give you XXXX.

on said the costs revenue on been any are of at you are on as you to lot horse opportunity you well. but Margin whole story clarify Ursula, the cost focused not Second, there's to a laser-focused you that I highly margin. on -- international versus beat call the that here, Robin, said and of wanted with the top the talk

risk Are improvement you're and margin being What the focused you above. cost focused that Are on here? What's are to you growth? all of on the -- rank that you of So focused priority EBITDA the is all control? if the on would. going

Robin Hayes

of maybe second of Sure. take North the the take Margin about and Star. I'll our the one maybe I'll that can question -- is part maybe holiday. and comment your answer then team

that structural we million we knew than to COVID, think much cost time more the our work delivering $XXX I of so that spent about $XXX up cost drive efficiency talking goal more ahead structure. We the lot to had cost program is had the the we in reason set. a do ended of to end in we

COVID, As further also took some well. our cost we went through to we reduce opportunities as structure fixed

And of with be Northeast. of need costs. to laser-focused go And on that COVID, so, lot we come focus the operating as that on we there were out a challenges maintaining

that very be fares. commitment to to cost ultimately have what to on because we allows structure low us that's laser-focused our that offer can we maintain so so And our

It I I we -- is that the additional the which does we have NEA reason to proof mix that the costs with margin into into the North American. Star think [inaudible XX:XX:XX] our changing enter keeping drive EXXXs outlined a Now, because some think is point airports decision call are margin more to in is is did the last that because flying we and the higher-cost we earnings longer that took margin.

is So going either. no Star, to want under I our to Margin be everyone cost structure eye illusions. -- want our aren't North off don't take but we I the

David Clark

book booking even And in for Delta this the not December, the well. revenue on third taken even. so the well. falling say is in a a seen catching this actually well, last about we've at quarter, holidays bookings weeks. just variant, several continue while at month now, because point performing XXXX, Ravi, did And were holidays same we the as than behind to we is I'd behind were time September. The over with more we weeks over travel the and about performed August especially, XXXX this Right August's year they for The and up were We've Dave, this early and very in holidays. been up the period quite are about peak following we've where question July in

Ravi Shanker

helpful. you. Very Thank

Robin Hayes

of couple a questions. take we'll more Frenzy,

Operator

you. Thank

the line Your Christopher. comes of next from question

line Your is open. now

Christopher

for my Thanks everyone. morning, Good taking questions.

us there. as it about focus to total what productivity, B FTEs help Thank relative line XXXX? a versus on passengers thinking part Do this that and a frame the and what we metrics improve E here on a assuming you is And you FT could look are believe per at this you to XXXX? -- back you're base, well at as XXXX run recovered, then ASM's Is we that XXXX that? you Going we can, when FTE. we to ASM are recovered fully that some there's guess airline fully of meaning to here? how also you. fewer the I look should can per fuel XXXX Should on out and expect to

Joanna Geraghty

Joanna. the give at first of look how part a sense is take to this you it. I'll just Hi, we

hiring I'll of So Obviously, each very departures X, But of a it. work couple Number That's things. different. we is departures on set customers. and will we see at group as a level but looking members looking wouldn't tech mentioned into schedule are that are as of X year bit the more of and inefficiency go stabilize. a volatility combination out we little a assured, on. has a per at COVID point every benefit. cannot created we away metrics into customers things The FTE. a and post it's - pre it ops specific it and juniority Number I enough. will has benefits about tremendous with operation of emphasize crew laser-focused had though the it, rest level have bring Ursula that next That's

about the that means close have think about you it pivoting you think you that. otherwise costs crew normal have staffing you that would pulling when new excess when of that So for staffing flying, you to capacity a where network you in, pay introduce do certain a markets When in time. amount maybe the used

as have And more crew continue lower up number, a meaningful for junior left crew -- at make at where will that benefit so members stabilizes, across members seniority hire a to the lower operation. to drive as the network we

important through step I will and most so training bring can't XXXX, remember, lot, thing we in on everybody there's better right mode. the We're now, and as hiring that's much we're a So get that think cycle we overnight. to into a issues, ramp-up throughput also but

take and inefficiency ramp and to We forward, have we in part to so you'll Ursula, get as meter the see the into to complement second right you maybe up moving of to continue want QX question. into staffing the QX level a them of

Ursula Hurley

Yeah, would said. I Joanna what just reiterate

centers highlight also I on through the with XX-XX terms the technology group is but feel is metrics fundamentally low we only better corporate navigate in that support 's that here path well. look as we very as improved we that can next go normalizing. CASM working processes. to achieving meaningful number And this that group the leverage we'll by and at That's track. planning network single-digit Joanna where work why we We'd value we process, ex-fuel confident as in deliver not would we work year. there work envisioned frontline focus groups, also a So also of

Christopher

could opportunity XXXX different here side, I a the XX% just just consider extension business we're the that is perhaps by XX% on question we type contemplating mix mix if or Is industries,. and of body? a to on what in should of of curious to the And terms you. Okay. different similar that second Thank level

David Clark

in the We Thanks, already business would won't about York same. exposure Sure. area be quarters the This our change so question, and mix this largely and mix of have us. growing X Christopher, for for New The corporate Dave. is significantly the Boston

Christopher

Thank you.

Operator

of Your Barclays. next from comes Oglenski question the line of Brandon

Your open. now line is

Brandon Oglenski

the Thank some of sharing the would smaller the want Hey, Robin revenue because good of And the where Alex. clarification a too. NDA, I'm thanks is to I of the or that partnership and at accretive morning. love criticism circle talk that think NDA, of you. then from of Fine. is coming anticipated About to guys how be it, that's that's back and important but gauge. But for little question more you Ursula, benefits I being taking short-haul a to you portion this just this assuming might couple the here. Joanna. did my to points out there, talk. Can

Robin Hayes

of by much think wallet can't a the presence Sure, in being NEA is -- and corporate we share larger again, of to we in on can New from JetBlue nearly is leisure to York look effectively of income, in point-of-view keep significant you then data I extremely wallet think tell this high flying. but it people's business our of -- at very follow-up, have when no. the a Brandon, I still of way a I'll how relevance XX%. network for important we and just because time that is a of attractive business terms level side. of more increase enabling high-share the if That mean, our

then members. our places, [Inaudible XX:XX:XX] ability to ability benefits the all members, us Americans the the co-chair JetBlue, TrueBlue fly -- to especially so customers the for offer more high-value ability And [inaudible more overlay historically to out-performer we offer on a And been York and from possibly XX:XX:XX] for a another Mozart fly NEA. back for own it our done us of And margin say JetBlue and look grow to New is is approach, perspective. will all beyond multi-pronged the is in always have without up-stand that what enabling could I that, I this to

Brandon Oglenski

Frenzy, X final Great. analysts. the we'll from take question

Operator

you. Thank

Your next question Hunter comes from of of the Keay Wolfe line Research.

now is open. line Your

Hunter Keay

ability the know the I about drive costs costs Thank to West strategy on out know where pulled are you on isten, West how you what the feeling costs is reoriented I on. squeezing question going because me the appreciate is of Coast Coast [inaudible with Coast, asked we in. because there. Frontier airport L LAX. East the you I that doing LAX for keep getting the to but down around just just of XX:XX:XX] it some NEA

sure to to accretive Star are strategy margin I that North the be have as be going in to parts? think the West Are able all moving this Coast about you that a you the context of concept.

Scott Laurence

Scott, I appreciate the question.

Mint best I in Coast been anchored through and the And the -- also case NEA the having to before into think at Again, well. we best the based that upon has COVID, foremost, case. standout continues and look that and comes particular performance I think, the West The Transcon. That strategy COVID Coast strategy and the LAX, the today. West the you as ensuring is is for leverage first price. us the product around -- at was our if in be

Coast expanded flying margin mid and is we think again, I portion flying and mid success -- come of can the So from the significant drive strategy where a that one Transcon. West will and expanded

Hunter Keay

room what most improvement? And then All the for right. see you historically what Robin, some that are costs. some the things done of things well where JetBlue on has are And

Robin Hayes

I with that, costs On it? take

Hunter Keay

relative do been but better prior overhead just you've you Not think Exclusively a probably costs you on where forward costs. could in anything unit guys and going job that years. just

Robin Hayes

delivered cost what we do. I where think the X-year I'd point back we would we exactly program structural said to

some over -- -- have the did We of and best during that multi-bag unit $XXX performance of and we cost the benefits. the of so period, I think have some that million

costs to and recap, also of ah, took the out I was over the of as that's question that our through issues, to again. one of costs. airlines, we period I'm in for distribution structural I why maintenance we that much XX:XX:XX] COVID, between airplanes we've number of cost maintenance program we I cost say new our issues, with a so opportunity.It costs mean, XXXX, recall agreements well, the those [inaudible years Mik of where number a start cost our lot went about you I will putting the we wasn't to that to demonstrated compare think would place historically, trying focused performed will But your buckets. took came other and program, XXXX if cost avoid the delivery the significant our less sorry.Onto you smooth as performance structural Baker. of as that on on time. and have we areas to

the pleased all teams of have efforts very areas. that that with I'm the those in So made

talked we COVID, look at hard into cost really a our went structure. fixed we As

can't that. in of we of fixed cost And And as we million capacity. flattish on way mid-single-digit out delivering COVID, deliver commitment, some And to we'll, to committed think JetBlue a long-term any when I provide continue on why $XXX sort increases years, X about well reason CASM And come I the I the accomplishing I I clarity. this of think, think don't sort next in that's what savings. see mean, over of are

truly can store of perspective. So to initiatives. new a it This I our year. on. the terms margin done know is lot into is we moment cost coming years. not and a of drive unique at drive through with is we've a I margin margin next It revenue X This discipline where that from plan a the to X managing and gets believe margin drive or marked this drive that's focused how planned is of maintaining But additional in -- plus focus the because a JetBlue in industry costs and what network 'XX we're and COVID. one on

Hunter Keay

you. Thank Okay.

Joe Caiado

conclude And day. Quarter Third will morning. for a us this Robin. joining thanks, Have that Thanks Conference great Call. XXXX Great, our

Operator

you that will for conference. again, today's participation. conclude And your Thank

JetBlue Airways (JBLU) 26 Oct 212021 Q3 Earnings call transcript