JBLU - Earnings call transcript Q3 2024 | JetBlue Airways Corporation

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Operator

Good morning. My name is Brittany, and I would like to welcome everyone to the JetBlue Airways' Third Quarter 2024 Earnings Conference Call.

As a reminder, today's call is being. [Operator Instructions] I would now like to turn the call over to JetBlue's Director of Investor Relations, Koosh Patel. Please go ahead, sir.

Koosh Patel

Brittany. Thanks, and our everyone, earnings quarter for call. thanks morning, third joining XXXX Good issued and earnings we morning, our This we release during call. will this a reference that presentation

investor.jetblue.com available All and documents to Ursula our Financial Executive discuss Joanna Chief at on Officer; and are York on Officer. results Hurley, our our www.sec.gov. In of our New the are President; website Geraghty, those our Marty website SEC's George, at Chief St.

Safe within information. during call, measures. with course During required date our tailwinds to statements. financial obligation materially and forward-looking to refer risks undertake Please by uncertainties on in place statements these discussion market such than of operations Harbor industry financial for only targets, that those and filings today's and call of as statements made and may materially for discuss non-GAAP of results and the to Investors targets, XXXX we'll quarter meaning be strategy, cause in we from call, XXXX expectations Reform implied statements earnings XXXX. Such on the full and other fourth Also, from undue recent during XX-K other and and contained not financial those no statements. The the statements operational expressed as limitation, are release the provisions statements could achieve certain to forward-looking actual our results statements. Private operations, and of the financial made reliance call, and to our trends, we most our Litigation impacts business. All forward-looking well without differ ability the Securities future associated should and year regarding position, these business uncertainties, as our may plans financial detailed of differ may the are this our update future long-term and to the and risks outlook fiscal a results of law, year of forward-looking of forward-looking actual make subject Act the as include, more headwinds, and including respect

For explanation over copy the GAAP reconciliation on Joanna which the refer our is to to corresponding release, please measures, and CEO. measures earnings of non-GAAP a our call of like of sec.gov. And I'd on website an turn to these a Geraghty, JetBlue's available now and

Joanna Geraghty

Thank multiyear to you, results. resulted team across earnings joining Koosh. customer quarter a reliable of strategy, morning, for caring our key efforts service, XXXX us year-over-year in The Good our to core execute tenet with for call. on JetForward, metrics. encouraging you and hard reliability and JetForward deliver work to and third everyone, summer, early thank today improvements continues This

not dedication results traction, professionalism the these would signs are the of While showed Hurricanes showing busy of XX,XXX possible period investments travel the crew in and Milton. of our Helene the resilience members, throughout and summer face and who without be incredible

ex-fuel the And we year, committed initial points points also targets. quarter. expectations for X full the by maintaining year. work, of the midpoint progress members you set third And at storms. and are we for guidance our uncertainty year versus range is and our crew made members even the remain we and CASM financial to still And thousands And with of that we've achieving the of live X.X encouraging. in this X have point up you. The crew thank fellow faced path our operating revenue improving our beginning outside the target that, in We your all showed for directly for these improved margin the year-over-year of We customers. quarter,

operating year ahead work day, toward is goals to We on our but there significant full still progressing our profitability. every are path

third Now X. operational that the of built X drives performance In and factor and to Reliable on the factor. Compared exceptional underpins service up the operational turning satisfaction success second quarter. points year, we Slide cost JetForward. and was AXX and to XX believe we quarter, and choice, caring was on quarter savings, completion improvements year-over-year completion up over points last from in to AXX deliver nearly the achievements

the Additionally, follow-on Milton to operation Helene with Hurricanes resilient returned operations minimal during was particularly and both disruption. and regular

set by This is the third all year. double-digit Promoter customer and initiatives, continuing we've of and our is to relationships at our realized quarter revenue A customers. Revenue to policy, was Blue long-standing was the a and essential And and driver was increase of to initiatives. Net XXXX Score went continued in operational in reliability reminder that performing performance choice changes strong satisfaction expectations. a September, customer a success announced quarter's baggage the build drove and carry-on in revenue beginning year-over-year. ahead improved with million is across million target bolstered Progress performance experience key from live delivering the the Basic the June premium of operational $XXX of of which our $XXX in

offerings perform well, Mint Even evidence continue premium premium our all between preferred further growing. is to that and Our for seating, More and healthy offerings customers' Space desire

with guidance in third coupled cost midpoint points. of resulted quarter X better-than-anticipated approximately the fourth ex-fuel by On shift side, the the CASM operational of a quarter, to beating initial our performance, expenses

future, JetForward. we portion pre-fund and execute us XXXX debt, quarter, the also took allow to over of existing and the substantial billion steps of CapEx to retire runway to provide with debt XXXX secure to Over raising on $X our a us our necessary financial

Moving to fourth quarter. the

and improved large to our geographies second continue online portion revenues the and over capacity we self-help relatively driving initiatives the positive unit in the demand of expect time, the the announced through own underlying our year. At healthy trimming of a core Latin, in alongside come to expect network half quarter. same especially macro our We backdrop

expected fourth XXXX. benefit RASM system-wide be to and the the previously As communicated, though modest are take throughout will to will we in time have mature redeploys the these changes ramp, quarter,

expect from We quarter. the to forward revenue Milton, election, points. unit in forecast impact disruption about by from year-over-year expect from that we with positive X the transitory third and continue to performance year-over-year events RASM the negatively the will bookings quarter, though to RASM combined impact Hurricane travel our sequential our We pressure progression

As are more to be & Whitney the planning into year-over-year a unit viewed with and also of over XXXX, headwinds we the costs remain them quarter, ground, we expenses over demand remain JetForward temporary aircraft by and our backdrop, be not we cost in the head we confident step-up for to future continue our in continues deliver due as are fourth transitory timing take unit challenged especially faced and expected underlying to should primarily supply and initiatives Pratt on to compensation. year. the the expecting as levels expectations XXXX. Long-term This discussions AOG capacity value. In

product. airport in substantial of at experience the as at on of As opening include be of expect JFK's Logan clear And roughly flat and at longer-term offer extra JetForward. On differentiated introduction year-over-year Terminal Slide to the a are a customers is this X, premium co-branded of announcing our better value. you controlling value, see X of premium but to purchasing over card. Today, enhancements can, lounges further and made to that loyalty and Last opening heart XXXX. Not as the our we to JetForward what line to having toward our our a products our plan. a and what announced steps we the enhancements can have frustrating, capacity intuitive month, and we XXXX to action. soon capacity quarter, our remain match perks end maintained on that the legroom credit introduction well sight certainly must progress we additional more onboard focused we've for customers product at Boston These our experience bias is offerings we reminder, thereafter we

progress brands. this transformed on reliable the and expect am confident our these focusing business, meet and and our you'll we share Marty my made made value of offering to customers, deliver product time, the ways, million all evolving compete franchises positioned EBIT JetForward landscape. By while for industry's am mission the most continuing on in delivering of delivering from one beloved to aligned toward topic. I incremental East clear competitive options the all rapidly well our phases we've our our to many $XXX returning a that the of that service, in are core air be the we in our stakeholders. to goal are more as on delivering of effectively provides more same work hear of million leisure to map mind, we will strengths all future and strategy, our proud compelling to initiatives, back the with humanity which travel. In With members am margins, key $XXX to crew to road our excited of Coast next a needs shareholders, of about of I consistently At JetBlue we on to new bringing expanding that to JetForward, customers. enthusiasm I You

to Now progress. discuss over it our I'll commercial hand to Marty

Martin St. George

Thank our dedication to members to you, their JetBlue. Joanna, crew and thank you for and service

build to proud deliver an extremely amount Hurricanes continue they face network past execute Helene industry network. way over the East members managed in leisure our JetForward of and continue months, we the challenges and to us, immense best crew differentiate caring and the Milton. They've of to service of also Our change I'm like X as Coast the

As and part City announced this of XX implemented closures. route over network XX exits have Blue we and recalibration,

actions to in officially our also perform where these Every sustained into represented those Just continue Antonio and network. and Burbank, who love way In to plan I San these customers have crew necessary return order we announced its for serve know a cities tough executed year mission, the freed last are especially our week, the serve the this But loss-making best. we simply XX% brand. of markets perpetually network members, our to and crew to cannot to Charlotte, our must tolerate aircraft and of in profits profitability. We aircraft redeploys over we station flying. earn part decisions total, up Minneapolis, left and have must for Tallahassee. are

Our network, deep and better openings loyal scale the who X of and customers have Manchester, in we geographies origin the City reinforce of know and relevant base. Coast where transcon York the announced and our in New geographies have serve Caribbean, in markets and brand core To have a Islip, and to leverage large Hampshire routes since brand relevance and the Cities awareness leisure franchises New new start to to regional service customer majority locally. we in year. Blue East our our our Blue our we Florida flying These build can these where East serve the Europe.

markets, Hartford, similar in continue such network. we markets fourth year-over-year and East As in to the network, efforts are Providence, nearly we to plan largest focus serving we on leisure our we be more seats in up and further expect ever. In where in deepening quarter, year-over-year, operating adjust our as XX% our XXX% Coast than our Providence schedules needs to Hartford,

needs better the perks increasingly customers the premium in We priority are who for to move our also value. JetForward we of another product remain committed our experience. Today, customers and milestone matching more to onboard a have announcing asked products

we success the revenue As it Even in well mid-November, booking by More on capture on booking evolving customers and and process search to to can later Space in mentioned, in seats. Starting the exceptionally More the plan continues segment in customers the we to More Even how We by premium addition sell we give believe directly has strong. for leisure more Space flight greater on interest today. merchandise additional that be to Space customers as we options the process have attract jetblue.com visibility page premium performed to results in our offering find in to Even build

to more benefits in XXXX, plan legroom making premium customers new find our competitive the the segment move amenities deliver extra the more leisure we and even JetBlue's it expect even and we to rebrand As position with in customers. to strengthen to offering, for easier we seats. book value offerings an By and to package and enhanced

to I've customer exciting experience, we announcements enable bring our products have experience on co-branded reliable we spectrum and to recent and it to a to months. our further to airports and the make clear on a we gaps moving complement are the Boston We of allow to service leisure But a ground. customers will and we not coming finished, expect lounges that premium over leisure to way expect ensure the to experience address X card travel receive are serve and Logan, the the and credit quickly board. Throughout perk are yet the premium us and loyalty customers to also full serve in customers. not before, is working premium have JFK's to offer Terminal announcements

to Slide outlook versus completion initial quarter. the down for drove performance and the down X.X% our initiatives to discuss with of capacity turning revenue Now and X.X%. higher-than-expected third capacity midpoint fourth guidance quarter period, X finishing our of factor for the Reliability

third supported but year-over-year most improving the remained capacity and Over quarter, with in trough region, previously revenue XXXX of our the revenue relative also points over the Blue we down cuts close-in recovery as and the also across by improved demand overlapping flights point the by our change and third during the X also the CrowdStrike we aided of industry-wide in supported quarter. bag And checked pricing These performance competitive measures Latin versus announced, September, seating progress our quarter, and revenue matching an the improved for competitive better July. days, flying were as the quarter. Unit well year-over-year capacity from to peak during was the last healthy seasonal incrementally Wednesday contributed geographies X.X% demand. with capacity continued expectations environment, third reductions. Preferred that event to self-help quarter. Peak we was our healthy. combined in policy versus the pulls, substantial the nearly initiatives Saturday capacity Off-peak capacity thoughtful And day-week in X as with performance baggage included revenue improved Basic quarter Monday, took trough. XXX peaks, in customer success our all positive RASM September,

nearly Transatlantic over the segments, third performance high up peak and premium Our and Mint, digits single Even revenue Mint outperform continued More ASMs. year-over-year. PRASM with double more in Space summer year-over-year to improved digits with quarter up XX% the

to but encouraged sand have by and in to Mint markets, Northern high worked weather when ramp the seasonalize also the the redeploy transatlantic ROI We allowing are aircraft to of schedule, these further us turns. Europe sun

attract of base strength wallet came of contributed TrueBlue Our members. engagement in flights. share half The on their grow of to quarter, year flight most the customer to and XX% customer continues leaves of our customers, growth to about continued elite our growth for is earned increase evolution portfolio team third cabin an TrueBlue that our our to revenue customers in make further reflected chosen value flying the status the number offerings in proposition. fourth of TrueBlue Mosaic and status the program. Shifting our it year. The bolster base, the the both the now who lounges continues to to premium and doing revenue to the programs year. The work to with is from sustained us deepened and JetBlue JetBlue which loyalty improvements competitors' the partnerships, of trajectory to new attractive along continue we've our and match proposition customer last and nearly made reward of customers introductory further our TrueBlue versus such over and In our this co-brand excited addition quarter. product one and record past programs with the TrueBlue for as members, potential network The have improve preferences

comping also We year-over-year. to quarter been to have And than And environment of quarter, planned weather while X% perform capacity more this the quarter completion factor had down X% to a capacity fourth challenging perfect year. down against last We're as trough is the adjustments. has be tropical similarly we in fourth made hoped result, last year. incremental near

be continuing from to fourth CrowdStrike third capacity down down impacts down at adjusting third implies constructive revenue revenue election year, fourth and into the Positive the and of expected expect X.X%. In the year-over-year an unit peak initiatives. When industry full we quarter year-over-year, Hurricane supported down in is planned quarter and the our X% of positive to quarter in is and RASM the negative increasingly for is of revenue which revenue demand, trends to the progress to healthy RASM the backdrop the quarter, For million consistent quarter, Milton our be X.X% the the supply midpoint fourth. X% capacity in third the fourth ranges. from $XXX by the quarter, benefit

revenue with quarter expectations. fourth in historic our seasonality also is Our prior line and

we and the midpoint X% echo point are full the so for revenue progress year, X% raising range plan this year. full far Joanna's For I by our of our excitement to X.X made narrowing the the down the down for guide and year. to

steps with I'm customers of and and Thank all right towards operation. With Year, our experience of prioritizing small you who our the New more give of the quarter the industry. are outlook look best a the financial As share fourth the the and the to to for will that, we greatest dedication the and value, because always confident crew business. safe part taking into first the the you in a customers Ursula, over putting on status best

Ursula Hurley

ended $XX We July were the of loss better Thank the by an just our of in about Over control. adjusted or than with our expectations, quarter X-point you, driven equivalent about points a million the of Marty. improvement margin operating X improvement. outcomes $XXX million,

As seen trend we in revenue to must continue effectively since expected, significant offset increases we the better XXXX. than Marty performance described, we've know order a posted cost

produce bottom down efficiencies We as also in priority margin is to the our line. Fuel July points to over benefits resulting improvement improved scores directly midpoint, X the remaining that and of $X.XX in reliability customer satisfaction and operational saw prices moderated expectations. move better our JetForward impact reliability initial turn, from cost beginning our

necessary $XXX JetForward prices which of the have we continue progress the to are we the to day, is our back for get indicative weren't X hedging range, hit that expect we we expect the our to in to manage million we steps commitment of to realize at our EBIT our control, to we second evidence to which initiatives groundwork It our out record is profitability. we still iteration set the quarter to exceed opportunistic hitting program, volatile hitting financial program program. At revenue But and our of years. we the While of made fuel the XXXX, targets profitable. the also prices targets. From our is the to structural next aren't the through operating the our taking business cost end set consistent of a targets. The end in this achieve for top plan exposure

Turning to operational outlook expenses our of Slide the better quarter. timing In performance the third third X.X% shift beat ex-fuel a end driven of by CASM quarter to fourth guidance of on better quarter the results of the our initial and X% X%, growth in up to and quarter, X. our fourth

million agreement Our well quarter Valero, fuel aviation the and the progressed of savings supply to New structural of in to year-to-date a program continued commitment World Services cost our first-ever initial sustainable the Fuel million. And an $XXX $XX year, ongoing in also York savings has with the blended more we during achieving XXXX. to third industry, alongside over sustainable expected signing bring and quarter, in delivery

pressured our number including; guidance XQ ex-fuel X.X%. we cost one, In the X, impact fourth compensation of of CASM total, transitory ex-fuel would factor to X.X remain are Pratt largely of XXXX do a X% cancellations. In of year-over-year ex-fuel completion perfect impact ex-fuel firmly to I to fourth the X full be CASM X and from the have headwinds, of represent high year, our points X to these clear, to up year, the on we to year of shared these points; be fourth Whitney the point the including the about Hurricane capacity we X%. to firmly & quarter want of quarter wage headwinds range step-ups due quarter. midpoint we our factors costs, CASM XX% comping am outlook. rate be Turning be the of within points; controllable worth narrowed from for near a maintenance-related the expected temporarily about the into last last credits contractual last of X.X to in lapping factors, quarter, pleased prior from now the for and XX% resulting quarter; full transitory quarter. I single-digits range against maintaining X, Independent the CASM shifted that expenses year one-time X, and in in worth expect up our Milton points to mid to

to model range. XXXX capacity, annual to has we year, our in look in historically previous CASM expect currently our we in flat like would next XXXX, which resulted As costs. on mid-single-digit commentary On I ex-fuel growth the reiterate

unit ex-fuel metrics where are be until expect growth we not these fourth cost to quarter January the XXXX of not While call, will guide levels in CASM XXXX. indicative we

to quarter, modernization shifting third the our X of continuation aircrafts, delivery fleet. Now, program. supporting fleet AXXX the took of we In our

the up $XX expect avoidance $X.X fully So These the The CapEx of year. in which to the make is we continue and cost for benefits roughly and for we optimization aircraft EXXXs. has our when will avoided maintenance to XXXX program, majority a far, deliveries deliveries engine full earlier total have year, forecast set date through $XX increased X $XXX quarter, for $XXX through fourth its the our million of fourth and of EXXX fleet program our quarter to continued take million retired. In year. the from on the to of million deliveries billion this the million of XX be about

as XXXX consisted of $X.X our notes backed JetForward. a well CapEx both of our TrueBlue exposure balance runway notes. The options loan, term to the loyalty expected raise from gives Slide end by new The worth was XX. for $X.X This and retire of balance XXXX more and convertible revolver, through deal our structure the from and as ample proceeds to of convertible were convertible prepayment senior notes which existing billion the our sheet $XXX floating includes us quarter, remainder also capital total Turning proceeds used and in The million to flexibility remaining $XXX with excluding our for new prefund portion secured a billion. sheet provide to liquidity, XXXX, on August, program debt At debt. our undrawn the million notes. is the of rate

a is clear. its And fourth is building base offer our ATC while our as we our all our they Northeast, positioned I we where into to to We believe the in free existing profitability, about products base plan crew desire, the to initiatives cash to foundation brand members back quarter billion. Being flow. We XXXX, adding drive us more funded that reliable get our face we JetForward win million JetForward peers. JetForward to the asset improving value balance and expect have service perks and $XXX further to unencumbered to aircraft of EBIT $X is capitalized in eventually right fully to our deliveries providing to be customers. Thank the $XXX in and firmly our profitability, of of already network and shareholders, produce getting value out ensuring the consists the versus believe the It well is challenges, with are and business are through on cost cash, allows offering our million business realize leisure benefits team allows and sheet operating you. solid uplift back working well for to our even control, actionable. the the and in to move customers in XXXX. that our confident focus

questions. it your We up open to now will

Operator

Raymond take And we'll first from Syth Instructions] our question James. with Savi [Operator

Savanthi Syth

have kind but revenue is I should in we kind kind better year-over-year initiatives. maturing RASM sequentially for Joanna or than as the network move trends not mentioned do Marty of like David, a the know question of JetForward you when if XXXX, I'm seeing this they start seasonality? and of deployments sure, performing

Martin St. George

Savi, question. funny. thanks Yes. the It's for

having the different JetForward, takes beauty to XXXX. The in I first be above, I'll go promised of of think, at a here. we $XXX lot to actually of back initiatives some look are in be can is of puts can the that, you if there lot below. contributors million a all some and

that, seating are are not biggest already preferred changed fees said like have we things changes more. program, preferred the the we've think changes I network Certainly, the making. that seating among even

say stuff, JetForward. bigger. million going macro focused other And relative you be of announcing of really promise we'll on be elements to the be we're the we'll forward more million XXXX But $XXX updating we're that a very $XXX But Some you million think network far. about that, is one. redeployment the seeing I'd if for with But to ramping. will perspective, going of in, what say to $XXX basis, a the we're start from happy capacity will and path soon. On the I phase that so about both promise the

and Islip, we the seen in you Now, in as example redeployed. Minneapolis. We RASM quarter. coming our that already That XX now of at we're the to you going Islip. third of are fourth tranche And flew we've look And still closed, an aggressively plane last I'll the of for is month the I flying, phased we're if revenue maintaining is, Minneapolis in give news big far being growth good changes stations out think, just closed, then in capacity, and yet had pretty capacity quarter there. as we just the Cities and months, the up X Blue

actually, So we flyer already frequent places happy with base. I'm the We're opportunities. airplanes strong in really, really the very a very, putting have redeployment where

is In top fact, network. flyer of rates attach quartile frequent already Islip in the for our probably

much we're forward to very, positive there, redeployment. very seeing looking the we're about actually what very I'm and So

we part the the building the big a as North -- that in really it's East depth think of I market. need Coast region

Savanthi Syth

capacity on side. I helpful the might competitive just That's ask And perspective. if

But capacity a you because it wonder, and doing control. cuts Spirit what from what to what could you're you were color, can you can some seeing aggressive is that if you're So on I bit little quarter. like also Frontier more do -- moderating. this control especially industry seems there give

Martin St. George

capacity I go capacity want detail capacity, and quarter is competitive say into would up ULCCs, pretty macro third airline being markets, but our competitive not actually even don't contributed unit to it's carriers. I fourth other frankly, in seeing third competitive still but a on over So maintaining a from level, our our that, revenue. say much too by among airline, with got the I'd really And -- it quarter we're And by even increase. we're I've to quarter big

speaks the the have just revenue we that think right performance to of now. underlying strength I

Operator

We'll Baker Jamie JPMorgan. from take with our next question

Jamie Baker

Joanna, think So when the and I charge when think widespread I But merger, that and leading made water it sort under pretty of on. as bridge the at of and agreement predecessor on support was so your sense international always back of this impression it's the network viewed strategy, I that I the there to point. the that always the it domestic was could

that's you I guess, franchise might the what anywhere are logic near that's domestic not transatlantic my widespread it? for taking operation? and we So downsizing contemplating the there are still And be from place the able internally here, the adequately to support is point question, with where

Joanna Geraghty

appreciate question. I the Jamie,

But that relevance with the this part think seen program. moving. of pleased at trajectory, actually focused East Coast Obviously, different us the from drives It pleased did. performance direction were with an pillars But the in is look very just important on maybe that, are if I'm loyalty as we good nice you leisure I a the of network. spoke. underlying I it best is transatlantic really summer, headline, how one we our a building you've communicate of JetForward pillars and the on

long, Atlantic. think during the nice and opportunities cold looking across the summer from fleet the the those seasonalizing I team drive some focusing for on of future, great can the appropriately job winter destinations months, and the about that it done think redeploy revenue to has we leisure As a during we kind

my but since plan. way it forward I we in with the predecessor, needed think JetForward move to our So as it's evolved evolved

Jamie Baker

you then And tenants to second, of margins Helpful. way have Okay. any can still the to maybe envision with you and the where sheet you appeal or I have Spirit? any of question, do the that. then? since A balance still your deal ask, stand scenario how original better reengage to given evolved ask do your Or scratch might

Joanna Geraghty

team focus really to the will are We be margins we course, delivering that to and evaluate opportunities interested acquisition. assets in there on improving keeping obviously controlling would But we're that lease Spirit's are not list age, can within reconfiguration aircraft complexity on what we and our there's us grow prudent potential may and the a revisiting say goes if JetBlue, there, maybe So to that, with on laser-focused and those. clear, allow that. I a come price, JetForward, capitally want in of manner, consider reasonable on. the up

then the to extent Spirit for interested we're potentially headline, makes JetBlue organic acquisition, shake of on laser-focused in on plan So consider that delivering the may the focusing things JetBlue. to and opportunity sort free JetForward, it not revisiting the for sense

Operator

We'll take with Daniel our next McKenzie Seaport question Global. from

Daniel McKenzie

revisit to be for the confidence that It be supply-demand XXXX to to on script. you you're guide the quarter, in Great just to XXXX. the would in not job great commentary and backdrop thanks know, that would metrics, to on goals. mentioned but third going the the it the back go great And guys 'XX I

margin watching set aside the any guess, that on breakeven And reasonable most I so just the & goal a change for a closely that? moving And are you're base based could Pratt pieces Whitney, today, potentially still could from you're further is outlook if what next hiccups of year? that seeing we what

Ursula Hurley

for the thanks it. I question. Dan, appreciate

just to reiterate So saying. going what in been regards to XXXX, we're we've

planning flat teens mid the middle going the the of moment. on process the aircraft ground issue. GTF expecting in due So high the we're year-over-year. to number to capacity is to result that And We're at of still in

In number. CASM early provide should ex-fuel expect guidance a little capacity, terms a you mid-single-digit too flat with beyond that. It's to CASM of ex-fuel, a still historically,

a So or what which to which a better. previously goal breakeven with op have reiterating plan margin, is is building we've we're said,

pleased in we're the momentum with seeing that And macro to continues backdrop to constructive. continue we're that JetForward. So we be also the assume

come XXXX to just in previously more but So what said we've outlook. around reiterating we're our January,

Daniel McKenzie

partnership, Yes, but don't here that's believe are current something the helpful. I guys I at. guess, question And JetForward. that targeting looking another large second that I you you're believe on included benefits

partnership to so be on? could how how incremental I potentially revenue line? quickly -- could if any my a guess, new the that fall how is question bottom And is, quickly turned quickly announced, And

Martin St. George

question. Dan, for thanks the

it's -- And plug the a It carrier. we say, to I could JetForward and certainly that partnership do concept for in So did going that there level is we're certainly forward. some we of of will something looking mostly we I want JFK now you, with, It with partners at have American. another that be remind with do right be XX could work at. Boston.

well. So partners understand we

what through for not we work as far NEA for might as us. I lot what think learned the us, a worked

have think in that's of the certainly gigantic an be optimistic pivot, not It's JetForward. the cautiously toolbox could tools number plan we that to at point it's might a achieve opportunity in try that I to one to I'm but future. make this some going the So

early is think thing with it'd too respect speed, say. Now, I second to to be

what be structure for is, a we lot size on the we experience depends of have and appropriate partnership but speed partnership of it whatever the this, the will it choose. I'm think at I --

Operator

our next Duane take Pfennigwerth with question We'll ISI. from Evercore

Duane Pfennigwerth

maybe Just you Is election? side of side up to speak other when the on pick the is an pick this Or get the will on the booking we side? it on this seeing other the of Marty, -- Can expectation of for it? election you. impact, to up bookings activity shape are the that other we

Martin St. George

were assumption modeled in we true And XXXX, an we've change. which presidential when previous there's come of So because pieces election this for the we impact, elections. has X seen making really

are the this that's down trough because the something elections, seen and during made one is much in we've year. Luckily, we first pulling the had and fourth The at more aggressive quarter, travel it we're troughs. we about adjustments think we week talked already forecasting of I historically, actual as have depressed

on it's larger actually So and that during flying recovered. have longer-term Coast there longer to time, and period I of piece West there's Sarasota different away hurricane, just it's historically, some And And have election, can Tampa to dealing this we and think out slightly other and hurricane. nothing Milton, we booking because third quarters. what what of in we I much as things. But where really seen which the same thing, again, that impact The days the focused during activity you of from historically. yes, between than who focused impact was sort we of which but is clean mostly fourth give think XX with -- just weren't to out sure they the no is, on call the a they was, than comparison actually make just different same I we've because think, X felt it been a the there people also the saw need bookings people that not as not was the Florida. But the is were during sort melted there's that just at of are booking

Duane Pfennigwerth

to just if commentary. you? playing yield February improvement January, sort you're what on We be carrier of about? system entity stay XQ early be RASM Would it Or some to I seeing with a more leading wonder, sort just thinking wonder, similar of I comment that maybe for you're least could give out average? Caribbean then you one And RASM how winter. look had forward on you, at would

Martin St. George

system So average always Caribbean for above has been us.

very it's So a a a have it's following. strong market strong strong and franchise customer where we and very a market,

and is important of But really so Caribbean to general, have confidence quarter to and out. San it's many really how we've aggressive will as will far think with we seen in shake we're including as RASM. what I going far, to pretty market into be too putting I capacity there. been say, talk about a happy very Juan, about us, we've lot this adding in first capacity soon

Operator

We'll question Wolfe with Research. take Scott our next from Group

Scott Group

on any have how about capacity Would to said, to than that the higher to first any you expect initial year I or the trajectory end half just to GTF. front So GTF. And on ground understand the aircraft flat of think related next think mid on then I lower the high-teens? teens to you want to year? thoughts for the of year, next to mid we're going high

Ursula Hurley

with to Marty. maybe hand then and start So can the I I'll fleet, over it

ground assumption want plan. I our year. a And will no, we're to on that process expectation remind in XX also some the XXXX to keeping capacity we're the everyone, So lost leases high in That's we that average, those into have fleet teens we're on mid to of our heading extending backfill to to using due also GTF. number continues set the order to of the of next be, retire. the in planning aircraft were

So we through working in the negotiations. are process of those

for to outlook detail just over add. you next so would Maybe any And that that year. is the on Marty more helping capacity

Martin St. George

quarter. in The 'XX. we'll the as mean, only what ASMs I going are first you to call, negative as mean, I guidance not fleet But obviously, quarter better that see to of on based the Yes. -- what -- we're plan right fourth give detail we know half in the far now, in with fourth expect

with call. on continue Pratt. be We far what's fourth quarter the the But will quarter the being in is very quarter good far as now happening And in to as as we it's actually well. -- frustrated fourth still handle fleet status situation right detail very on as -- a we'll dynamic, get be and that negative able give first to as unfortunately, this about very, more

Scott Group

of guess, the are just next sure, next CASM I still we make I when I the And anything about secondly, we around talk think just you'll from X-point step-up? sort assuming the quarters I the mid-single-digit early we want of the And hit year. that to wage year, pilots to for have are starts type couple expire, for extension year? a because next guess, including

Ursula Hurley

assumptions. would all assumptions, CASM year. next a all that mid-single-digit So of capacity, our unit And mean I ex-fuel with at we labor cost performance reminder, insinuate in. would that's is maintenance be that flat as historical inclusive

Next year, inflationary continue the across see we'll to at labor level, groups. the work highest pressures

reasons nature We JetForward. part to the VXXXX as also as will place of we just pillar are well have the in why put of due the also step-up maintenance a expenses But these cost fleet. in

to have and going that result number across in labor will we're for and XXXX. which we maintenance we're So which pressures offset in ways mid-single-digit seeing a these

Operator

take Oglenski Brandon our with from question We'll next Barclays.

Brandon Oglenski

by driven really you're being And Is the that impactful the more and commercial is changes maybe correct? side correct? you changes on Marty, pricing. think be right, that to the majority of So going XXXX? product if hearing the to seeing network I'm are Is in I potentially improvement

Martin St. George

That's absolutely correct.

Brandon Oglenski

year, that you're I run million more? rate though, changes mean, what a seeing $XXX where on been this made elaborate bit can you little that have of or

Martin St. George

Sure.

we've So changes a made bunch of already. there's

to so non-even most preferred more the where those into impactful we seats. the the one think a far the front get the has are program that's fee in I for airplane, of charging seating been seating

full $XXX the as in product to peak more be again, a make and baggage far call, quarter free detail more, a for a pricing bit But still to Now be we'll We above you front be will for XXXX, changes and to are above to the hopefully a that during be benefits about respect bag recently, the and million little little carry-on go sit seat of it going of we forward. respect product, having not attractive Also to for our this expectations. happy That close assignments. it's even performed where of to how product But quite able fee accounting merchandise offer have promised taken a a just gone. With are in the airplane, as September, change we there -- that now in been some free We've more well better out put excited where We we're periods. Again, away to have our that. the Basic if we Blue assignments a is announcing has with will announced approach. seat also Blue we be expectations. check we free fourth to Basic, want point offering customers. in give as that with you even multifaceted clear, and as Basic change Blue We're we the how actually the customers. that's we'll for very come. variable

can some to commitment the be make But be deliver commitment, our to team below. not we sure we that that forecast, and can a can things be we Some on above at, more. investors, can make a low, as some things is leadership goal things be if have

then stress a enough. having enjoy really actually but we why and basket. And to mentioned I can't that's it mention, Joanna want the the So last it script, in I thing

enough as it's Having fantastic airplanes and really far tiptop as stress it's and getting shape. points crews Our I improvement as far maintenance, can't folks improving the go up inflight airports whether performance, whether our by in that have up is. how in and important stepped flight delivering crewmembers performance XX on-time on-time as product, a NPS,

in thanks some again, of hard crewmembers seeing work, because So I of should give our their a numbers. for to we're all really our

I think we're definitely seeing customer an the of improved benefit experience.

Brandon Oglenski

that, in next last And for guidance solidly? in I aren't and appreciate profitability to the towards all can know right year, can the pull Joanna. you if are maybe I don't one get but just provide black I want levers to things Martin. you I turning guys mean, if business incremental now, what

Joanna Geraghty

Yes.

the is if think, we I And So what goal profitability. trajectory laid out, get look us at to back you towards JetForward. the on it's

as think that. we which, And announced, come after managing will but improve we'll and know, is first the of way, next pipeline. Even that's cooperative then on other goal to More coming. those Space fuel, capacity we've that, is through to to actually all step. to Obviously, If plan in these own some plan. obviously down additional any be better. that you number our tailwinds And of this all issues. get the the meaningful got about against announcements or a announcement there's but contribute pillars a a we're continue today, AOG of the macro op the we've airline backdrop obviously more margin But building with as then year, of breakeven So

Operator

We'll of next take with from Andrew America. Bank question Didora our

Andrew Didora

Pratt So on then Ursula, terms we of it's framework from like should any know, to think very year, XXXX next GTF. for look XXXX but what any I to like? And what thoughts just kind -- about I fluid, relative kind potential maybe potential of in going how any could back look compensation guess, could on AOGs? of

Ursula Hurley

constructively as aircraft both compensation. the We for XXXX. thanks the We're our beyond as have continuing Pratt with sight of line on don't work to on well question. ground Andrew, clear & forecast Whitney,

So in both are progress. a work

Andrew Didora

And just follow-up Marty, the maybe it. Got a just Okay. election on for impact. then

there outsized where pretty you it see Just impact? Or is Just are thoughts particular markets curious, any broad-based? your an there. curious

Martin St. George

It's here. we definitely specific no broad-based. see There's markets

Operator

question We'll next Stephen from with take Trent Citi. our

Stephen Trent

think when focus or Do I'm any you premium sort movement anticipate about about your on think leisure in you of adjustments program? customers. frequent your curious flyer you how

Martin St. George

got for the great more Actually, card it right is in TrueBlue. I we're our we've you leisure in a number. low now, had in is elite we've I how to in we're spend world than I we credit TrueBlue for capacity, We've programs. flat friendly And year and over -- -- out the down look see or here. to We've released program JetBlue customers from in think airlines there don't growth a major Mosaic a up teens, in other customers. had at frankly, elite when earn customers think actually we if a come Even competitive think already structured status

worked it's beauty TrueBlue. respect the it's I actually think And think I we've done funny. well with what in of extremely and is, to this

sort like business is, a is of person us, is single phrase the customer. about them of I subset both every leisure think There you the who a to target one customers. the and leisure use for who are If and of flies customer

one in which opportunity I of country the were think frankly, least look we if actually, is customers and And XX, us. at -- dollar-based at earning leisure ago. did on we programs first years for focused to I the dollar-based XX have being think, burning, So an you very

is Our fantastic. proposition value

very the So to I'm structured, we're TrueBlue team shift about and that optimistic to continue is ability more how with happy very of share.

Joanna Geraghty

match plays that the a for Mosaics. We've Mosaic including out, we're card the that some I the Yes. add value. Puerto If lounges Avis but ladders JetForward it's in with whether you the customers' improvements sound of plan or business all and not to a things our to if rolling back program, all launched to that top got at the And premium loyalty a I down of premium delivering like card, to on that, look could just this broken back record, great ladders think status our Rico. customer. We've

on. list so the goes and on And

about Mosaics with with loyalty who we about we JetBlue. So think much as mind. But program, designed particular people real we it's of the in customer designed the being stickiness leisure bigger are by with deliberate also and of amount very we as and to Marty and more drive out, how how good in are and pointed them thoughtful see who vast our really year There's amount the a opportunity them. programs, every some feel important lost this fly, a make we very

Stephen Trent

think just the about for what portion that high-level if attrition of example, follow-up growth idea is sort that. on TrueBlue, carriers? When from on other And any real growth I you of of may quickly

Joanna Geraghty

don't we back number. with that can We you So have circle on it.

we're customers to is about day, that. it clearly But It's how to necessarily that's of end trying at It's of the see thinking about trying the not tread TrueBlue. Some not others value out. JetBlue, value demonstrate and on we've frankly, a for be for to because want drives the of loyalty. people JetBlue, that got program a to approach a part it unique

you that So, about you Marty? that perks perks and care want.

Martin St. George

be one example I'll The than OA some in a that I relative flyer share if think better is hub, you'll Dallas there's on competitive not whatever, you're markets. other a I lot is, you're thing opportunity tend carriers. TrueBlue Yes. represents a in frequent or would very of or somewhat an add us, see to basis, in whether from The shift. We to give Minneapolis a for

X got market. the in hubbing South in loosely. we're in But airlines other competitive X very airlines Metro there's We've phrase Boston, in use Florida, Florida. South airlines multiple York, hubbing hubbing New hubbing a I

share lot where they have as have So have Delta that not airline, Minneapolis, were low a share think relatively customer in that upside actually if you of you all a we a of wallet already. of probably would I wallet

Operator

our with take Fitzgerald next from We'll TD question Thomas Cowen.

Thomas Fitzgerald

has Blue the Just Basic winter? well as of how some versus adding your curious of transatlantic expectations Mint you're as seasonal to performed flying rotating this carry-on the bag out

Martin St. George

seen, the And And expected. upside peak, that But to we First we've the able we've trough had with competitive more biggest than suffer in forecasted. originally I having think were respect bag, we carry-on to as above competitor. really against clearly, be is the we during season, without think it. our it from product I we had frankly, seen of what all,

found the comment Mint So us. With the with services, jumped markets that's been when in to Joanna for wintertime. program of being the Atlantic the summer shift great I almost some of the think respect we mid her in Jamie have transatlantic. to able I and finished rotation airplanes about to But seasonal really a a fantastic seasonal the in between formula in the

have So this summer, round winter, we or strong I'll historically, trips been Fort in winter. We've I very one The Those that. Phoenix, This York. XX had actually markets give Mint actually XX into redeployed are Atlantic. being and daily Boston or to I New that X. across airplanes think, in Lauderdale, from are the we're airplanes on think fantastic X the both down bookings domestic example. X got,

shift this in the a be think to week, looks as success back service forth. started airplanes rising that far that just but as we to I ability fact, and

you international profitable into about XXXX, spoke. talking summer, been aligners a earn a started Atlantic has I the every strategy, Jamie said spoke. still the Atlantic, Now is And it's in phrase, used talk way its back spoke. that when this airplane to And to network. we is it about the the script, the a When when

actually, had just combination. because and fantastic had mean been -- think a week, who come product that customer who great really Mint a good us. over I this from testimony I is for So review JetBlue. we have to did published. we to a was profit customers it's the generator good And product, had of a a a great, a is it's e-mails couple We've Mint how It

Thomas Fitzgerald

color, that for Thanks Marty. so much

strategy more as revenue Just being really premium in driving out while just just So costs? on curious in you of about love hear on kind hot to the reports the basic a the also of how follow-up, curious there. been there's press I'm I'd on economy. on a transatlantic food judicious cutting broader thinking

Joanna Geraghty

product I tasting second process We fantastic across hot. entire have none. transatlantic, it sat personally DIG, an the cold whether through to it's it's a and with food core is or

it transatlantic. any So I hot against the put currently other flying would product up

frankly. there, flying we think there's to It's and transatlantic I still costs, some much it's see So there product. We superior to a it moved to fantastic but think there's product you've an got currently. coach cold to opportunity not because that a what save far

there. we're what of proud really delivering So

Operator

Cunningham our with from take Conor Melius. question will final we And

Conor Cunningham

I the been I've Just you to second. the finding drive really as of to are you're that's made network are a for think and more realize being relevancy great. you've and people JetBlue? back a lot your changes that RASM and the when those network changes, you've product stuff, of towards But you that for all additive made. pie returns Like that people dependence using growing that the is coming like that overall? point do are adjustments about

Martin St. George

where we profitably. who be who opportunity a And York forecast we carrier New in default do that New we we fly not for X competitors, are in full-service towards job can pulling places want and I'd call our frankly, a well. will of Providence, in we State, have we is JetBlue. I of customers have And these legacy would we to markets, note absolutely situation to Bradley, can sort there like in those a answer The customers not competitors but very actually sure Southwest all ULCC I like Islip, full of as lot I a market doing yes. we leisure. numbers absolutely both good the competitors, that of had don't pulling in had say over. And competitors, based markets are stuff England, seeing Manchester, guess. these Southwest on in the customers JetBlue, are we're I'm service, do

not is it's in going the see those customers this and the we're growth it because extremely markets, So respond to end of to well.

Conor Cunningham

I'll Maybe at just keep one. it

Operator

have to the I'll back any this time. questions closing queue at we turn And additional Mr. no over further in the Koosh remarks. Patel program for or

Koosh Patel

call. That XXXX quarter concludes a Have third conference earnings our everyone. day. great Thanks,

Operator

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

JetBlue Airways (JBLU) 29 Oct 242024 Q3 Earnings call transcript