JBLU - Earnings call transcript Q4 2024 | JetBlue Airways Corporation

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Operator

Good morning. My name is Christa, and I will be your conference operator today. I would like to welcome everyone to the JetBlue Airways Fourth Quarter 2024 Earnings Conference Call.

As a reminder, today's call is being recorded. [Operator Instructions]

to Relations, conference Koosh like Director to now Investor of Patel. will turn over the JetBlue's I Please go ahead, sir.

Koosh Patel

we earnings Thanks, Christa. for This and XXXX us that this we for thanks earnings will morning, the call. reference presentation Good morning, our everyone, fourth and issued release our call. during joining quarter

documents on SEC's our those www.sec.gov. at website at investor.jetblue.com of All website are available the and on

Ursula Geraghty, George, York New to and our In our Chief St. Officer; Marty results Officer. Joanna discuss Financial Executive our are President; Hurley, Chief our

Thanks, for Christa. this during our that earnings morning, Good joining morning, presentation everyone, and reference issued our call. call. thanks for we earnings us the will XXXX release and fourth quarter we This

on website the All www.sec.gov. SEC's our those of are and available at documents on investor.jetblue.com website at

Joanna to Chief and Ursula York discuss our Marty George, Officer. are Financial Chief results our our Geraghty, St. New Hurley, President; Officer; Executive In our

with financial headwinds, and forward-looking and and associated provisions Litigation of including we operations first meaning future position, statements quarter plans regarding During the will our future of trends, Act tailwinds and our our business. without for business Reform industry the today's of targets, statements impact limitation, XXXX. Such statements our our operations financial the year to and long-term financial market and financial make expectations ability of to our operational call, on respect and targets, outlook include, within results XXXX achieve forward-looking harbor Private full strategy and safe the Securities

may for these fiscal XX-K those as and more recent results detailed could of are statements this statements statements. information. expressed uncertainties risks to undertake results risks well obligation contained cause law, made and to the our date reliance these release filings statements. that in those may from Investors be forward-looking as during most a the discussion on to materially and actual and of made our and statements. as not only of we forward-looking call, uncertainties, call refer to required actual subject the should differ are The our other financial undue XXXX such place as Please All than forward-looking or by update the other year implied the in from earnings differ materially no and other

during certain non-GAAP measures. Also, we discuss our of the course may call, financial

on explanation which copy to an non-GAAP refer a these and to corresponding release, on our of reconciliation the is For of measures GAAP measures, sec.gov. earnings website and available a our please

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

Joanna Geraghty

thank and morning, Good you Fourth for Quarter XXXX Call. JetBlue's joining Earnings

loss. begin, support tremendous Before to express take Los experienced to by crew Angeles, the especially members to wildfires our who and a sympathy have I our devastating moment in of affected those I several want

am and the stand-alone operating was ended introduced who And strategic I XXXX over expeditiously adjusted to of plan, new for year a positive We quarter, a momentum, for a of X at our announce, pleased margin onset X.X%, XXXX. period better than to last the leadership team points generated in the we fourth with launch the we transition worked July. JetForward JetBlue. year, of

returning our fundamental sustained of achieving This to plan to is profitability. goal

achievements XXXX, year. results the I'm weren't we the with the that proud believe early far, we progress during that of very evidence taking are right we steps half year, made so towards the So for in bear the margin profitable second profitability. and operating the expansion of

and put traffic ongoing costs to was revenues. & presentation. leverage start X the path challenges of control tackle, to and to JetForward Whitney, back than profitability. Pratt issues evolved growing of including strengths and knew to to us XXXX, earnings Pages on air our X At big had we preferences, designed we Turning the challenges combat customer a faster these with

facet implemented business, operational we made great a strategic different dozen member every progress engagement in initiatives and With and over including announced performance. customer our of urgency, and satisfaction, crew

improve across we investment track. we nearly multiyear are reliability, a metrics operational that benefits the seeing to all and launched We

points core For example, by Net better in than airline XX overall on-time improved overall and XXXX closed spots performance We redeployed ranked in Cities XXXX. our nearly network X improving XX% into from the Street last Score realigning Coast. over of Journal's Xth XXXX place East was rankings, and Promoter X Blue our in points, Wall XXXX. we XX strengths our in on network, place

England San the Juan and boosted our and across and with more a focus base crew in reinvested core footprint We flying Florida of and franchises flying. the city, LAX our Caribbean. refocused our New We expanded addition

We line aircraft. the in creating of Mint also transatlantic new their our destinations further now winter, these changes of early Many are seasonalize ramp. for in stages

loyalty implemented deliver the multiple variety announced evolving ensure preferred and of changes outperformed and offering and to initiative our out adding attracting expectations, to and bag. a rolled incremental JetBlue. We customers our distribution our seating, We our Blue experience has our complementary products also This want. and we shows are Basic data partners by carry-on perks customers a offering to enhanced are added our back to we

XXXX of strengthened in deferred These ensure raised we benefits will liquidity we runway provide moves capital To the and the strategic to secure our of JetForward. our place to beyond, and position billion significant to achieve financial and $X financing have JetForward. for future, expenditures runway

program. been positive. next, gone cost announced and EvenMore, these our customers and change JetBlue additional a has feedback class, implementing credit which a immense first as year initiatives, from domestic Alongside launched this we lounges, through new co-branded changes, has and premium such transformation card

encouraging, on demonstrating member member better support with up crew across organization scores the executing year-over-year, strategy in engagement also Crew sentiment has been alignment JetForward. the of

were boosted robust across strengthens by ability results evolve the changes that Points Basic we the and again customers the our even XXXX we in of Airlines offering fifth proud to core XXXX, awarded the progress to offerings confidence Blue Economy deliver I'm our to we for in industry. efforts Importantly, quarter time, by In Guy we our and on Class implemented. rated to product fourth our have we've the personalization was meet The as combined steps commitments today, take XXXX. our The Best needs once best made during the with U.S.

Now shifting to Slide performance. quarter to X review fourth

continued on-time navigating fourth We across our all control recovered metrics more million. of period. points and X For we of benefits us XX% the reliability investments through XXXX. in programs improved the despite air income from enabling of and challenges a quarter, fourth operation from guidance, holiday quickly in outperformed factor relative in to year-over-year than adjusted completion inclement as The traffic $XX updated we delivered weather operating over ATC generate persevered quarter. saw our the And the quarter performance to

December the a $XXX holiday initiatives. of season range. revenue than $XXX improved and finished of by guidance operational also our quarter XXXX revised of These low of year, by over our million million. drove beat and The performance guidance benefited revised our healthy better our revenue the initiatives performance growth, aided X.X midpoint ex-fuel $XX the end our target November million fourth which Revenue CASM points, for

was and expect in this we for Encouragingly, anticipated, the than JetForward ramp part forecast originally XXXX. was quicker of we

$XXX are already EBIT million for to million through say XXXX. million we a incremental our As result, we've target captured $XX pleased to of $XXX

biannual with provide next earnings of to plan we our scheduled July updates update our on call. for forward, the JetForward, progress XXXX Going

in in We operating guidance. lower July with what operating by margin from than XXXX we This expected benefits margin implied strong our XXXX higher finished combined launched resulted fuel, a with we points July JetForward. than X.X higher when performance, was

X. improve the build more center set Turning on-time more we performance, expect schedules enhancing Marty technical XXXX, an Ursula tool Page reduce investing in to resilient this plan our further we as reliability In to dispatch and operation our operations reliable to our moves refining continue to priority even controllable to year. detail system other provide on and will from in cancels. what and

is of XXXX. contribution In deliver million incremental $XXX to on about believe JetForward all, EBIT track in we

X%. ranging and aircraft from been gap continue a will be in recognize, still X% The significant a to margins Pratt near to to adjusted there As impediment have however, a peers. expect year our positive full Whitney significant the achieve the result, close and to operating to industry we We term. grow groundings to margin & room is

We of this mid- AOGs to to impact. grow X.X Ursula negative margin believe in operating and teens. XXXX, to approximately to on impact will as we estimate had the increase on direct the in expand high groundings will of a points breakdown the are expected XXXX direct impact X that points

and the focused opportunity administration industry our has clear This challenges the if a another for is in a tangible pivotal This traffic a With industry. real tailwind and to FAA also represent to there improve plagued fix but Washington public for is a the the JetBlue, undertaken. benefit new focused structurally is on could efficiency, control year air been with. traveling effort a

We and the DOT are about of the of confident right I'm approached am opportunity the the in February, at to And make to to as look the plan flying. of partnering next XXth on executing new front excited XX FAA with JetBlue's we I the we leaders forward this in happen. in help anniversary first usher us. years flight

members. to us and adapt our our into and to commitments to strengths, positions lean changing customers industry historic a our JetForward meet crew shareholders,

and of to we commitment urgency continue to run first is there. business, will to a work absolute get sustainably profitable The with which

service, I the possible. to the As during exceptional continue Without a our customer also crew change. you goals holidays. up share meeting members stepped heartfelt would those would the to would like commitment, we that thank like on not your I managing to of while immense who recognize close be our efforts chapter XXXX, deliver to

We build in have on excited it I'm to coming of out momentum XXXX, XXXX. incredible and

commercial Over to a and Marty for update outlook.

Martin St. George

busy day crew and all Joanna. you echo our especially out, the to members. our thanks delivering to Thank Thank you, experience customers I JetBlue holiday in day season. over the your for

to November points quarter initial strong X.X% helped unit of geographies. to Turning performance Fourth and guidance. Close-in Unit X. our growing unit versus on revenue improvement and was holiday the December was across less with about capacity. demand solid, was many peaks, X% revenue year-over-year strong X.X drive revenue Slide revenue in

In we first in half, the front, region particularly a Latin the more pleased flying, VFR growth seasonal capacity transatlantic which to improvements ramp as as revenue saw schedule. excuse me, nicely unit RASM the As sequentially from we the the competitive with are slowed our recovered and saw our -- first with half. we continues half On in we leisure enter winter first second the mature,

to leisure the year-over-year digits single of premium Mint our the The in by preferred unit segment. healthy products seating the of were revenues transcon high we Our those quarter. customer in XXXX the RASM, supported another to in success are testament year-over-year to strong EMS, and produce suite franchise fourth enhancing and Mint growing, It customers. is performance. Across continued of serve healthy is strength and up better

members also quarter, outsized improvement XX% core Card driving [ Loyalty are strength were through drove single during to were not airline ] while up responses customers we year-over-year, now revenue, was positive high may of our active the which XXXX. that, for be total low TrueBlue from enhancements digits, program. strategy and the is spend and up where a digits in their multipoint single the loyalty accounting Jet exemplifying the Forward growth to growing, our our

initiatives year. million XX The benefited the quarter benefit the generated presentation. be which breakdown initiatives, found can $XXX line on revenue from Slide earnings of XXXX of Fourth for these our of top

Blue and with baggage revenue these beginning, of contributors carry-on it preferred to policy in XXXX. revenue the were only seating The us key significant XXXX. Our and Basic the initiatives capture momentum into revised headed is provides progress the quicker

our first Turning to outlooks. full year quarter and

headwind. compared is planned be second to the year-over-year. the a expected range expect down will into year-over-year quarter quarter, RASM X.X XXXX. In the back year, for X% shift we be X.X% of down roughly down flat the capacity to Easter first of with the to First capacity to And to up in growth quarter point X% be roughly X.X%,

innings Northeast period in the also about We've ramp. In reminder, elevated trough leisure of of these the competitive and is many first of its quarter in are a particularly markets, historically is in of weeks. with airlines, it much Florida. the flying of our first slower many early As for quarter, of seeing the network capacity XX% we redeployed

competing to competitive core will and capacity expect continue in committed and strategy. ebb JetForward to flow, We remain to geographies, these we our

quarter our growth, level. As we is to execution rest first to year, of the look the the continued propel JetForward of than plan higher unit expected revenue

to X% X%. RASM full we the to For expect year, increase

In flying efforts will seasonalize best new remain adding as month, of this additional expand to and our from hard efforts. nimble we Earlier our at our transatlantic summer support made more we in a plan to May, Coast an East group destinations the Boston optimization look launch part to daily and our Madrid flying. further to Edinburgh continue across as seasonal announcement, profitability and will service network nonstop even And leisure take network in dynamic network. network, we we of

our and XXXX, products will to a complementing In step take perks network. also changes our forward,

the live addition premium updating elevate will offer. position and overhead the and to other go the among quarter, today well the include us soft merchandising offering. economy last product changes In now enhancements, EvenMore are to announced EvenMore peers domestic onboard perks. to to bin experience with updates our dedicated we These compete space

a flights every added the new to customer experience our step demonstrating recently Venmo, commitment customers for for way travel to of using pay on their also enhancing journey. We

year, the soon, to last open of the premium go including our year announced X the lounge which co-branded and Terminal card, are scheduled Over quarter. initiatives in JFK several course applications to very accepting our fourth JetForward began set live, credit also

meaningful revenue satisfaction our of JetForward margin. and to the in better have revenue positive Unlocking as the and initiatives, we the plan ramp customer operating to improvement operation, success a confident achieve our result of incremental Between I the our the the and margin a pieces growth shareholders. all network progress am in of revenue place for changes is the generate XXXX accretive from right crucial momentum XXXX have the we initiatives, unit

Now a Ursula for to hand I over it financial update.

Ursula Hurley

Marty. CASM structural line initiative of million, with you, million all quarters forecasted $XXX range, profitability, $XX XXXX, by initial since row X to our and concluded early path program, in year the our a we on benefit beat guidance. on CASM of which delivering ex-fuel have to moved revenue JetForward, our in cost In forecast at XXXX against. the our $XXX Thank of our launching months of end refocused quickly ex-fuel JetBlue of top full We we execute delivered our guidance a delivered million commitments exceeded January

the half, ended expectations. delivering Encouragingly, margin year second our operating improvement we significant positive July the a from for

We strategic JetForward also meaningful financial secure benefits. it $X financing, helping runway deferring and to needs provide billion acted of future, to CapEx generate quickly our the raising over to

refocused Our XXXX, same commitments new aim in do leadership and the team XXXX. delivered we on our in to

Now turning to Slide XX.

Through full up of within the year-over-year, half. efficiencies, as the CASM & to of offset compensation ex-fuel year, For headwind as high XXXX X.X% reductions X accounting grew and reductions digits controllable to mid- about firmly our headwind combined benefits initial year-over-year. the of of capacity from change X.X cost single the well targeted point cost were Pratt we able in Whitney from second reliability-driven guidance point

year-end cost on our For revised to which sustained the reductions operational we beat year heading controllable into increased by and controllable efficiency, performance over unit fourth quarter, the fourth XX%, and have guidance the again With adjustments. driven momentum in costs XXXX. XX.X%, XX.X% quarter, cost of our

in year, first XXXX, on forecasting the strong issue to we the X%. engine this revenue to rise are teens, mid- flat positive margin to the resulting in growth, July. the from to capacity in stated and ex-fuel in operating expect goal the with with of Looking we help CASM ground aircraft up X% line And unit to we high back GTF

headwind points earnings impact the We've presentation. impact to down estimate our operating a that XX in of about has mentioned, of on margin XXXX, will operating increase Slide margin drag this represented Joanna in and the performance broken As X XXXX. AOG significant to to we

expected margin to occur to impact lose to our include grounded is variable X. direct situation our expected headwind decrease, efficiencies in includes begins market It the fluid, as profit gate count which is by AXXX flying fleet. is share and staffing the and to such the transitory, indirect and aircraft, available not ultimately and impacts we year next impacts not also of our The extending utilization. or net the but all from the resolve the aircraft JetBlue, to as does This cost

the impact employing strategies much optimization growth In of to creative and plan as the continue we meantime, as possible. cost offset to

We trough, of first in the slightly elevated ex-fuel the and expect driven of remain XXXX reductions lapping timing the the against strategic wage quarter CASM pilot by to growth during XXXX, capacity our up step rates maintenance.

XX% As in the anticipate a we result, to quarter. X% be to ex-fuel up first CASM

is ex year, to course of the quarter moderate Over down the levels. from CASM expected first

to JetForward more of burn Cost efficiencies XXXX, sourcing commercial $XXX savings from In realizing our enhanced half operational functional technology-driven the the fuel back and savings transformation optimization weighted functions, and benefits begin in capture cost we cost a from include XXXX strategies effort. and the to with target, million year. expect planning

remain sheet to Slide In on XXXX, Turning our balance priorities the XX. our financial same.

operating First sustained the a and generate down years. to will is free in achieving flow path on coming pay profitability us debt critical, and foremost, cash which set

the our our first August. $X.X steps capital billion of towards future last securing One was financial raise strategic

ended We to fund billion. with billion incremental total with $XXX of cash, to existing credit revolving our facility. all deliveries million liquidity our about unencumbered liquidity, XXXX undrawn $X.X is in of $X expected base asset excluding adding aircraft XXXX The

We approximately $XXX forecast billion liquidity for million for first XXXX $X.X healthy CapEx XXXX anticipate with is a quarter. Our and ending the buffer.

a on The the to over retirement been X thus deliveries, phase plan steps lease a these expect expected to fleet dates XX, takes actions and extend of AXXX number aircraft of combination we've which benefits from taken to our through XX in changes puts also aircraft. our years. owned We've XX And fleet. of we extend capacity several are AXXXneos. year. of buyouts extensions, XXXX, AXXXs this far, lease to XX the lives and has to and Page Turning In working

peak, Finally, AXXXs. we to in more the replacing after and with EXXX plan retire the customer-friendly remaining XXXX, a fuel efficient fully aircraft summer them

$XXX the we to efforts made is in margin By EBIT million of the July. In incremental result program, to the for XXXX, we end the culmination year, commitment for JetForward into total of a million JetBlue forecasting big milestone XXXX. closing, a growing by end our our are to expected generated $XXX from XXXX in positive from of XXXX nearly operating of and $XXX million

and control still, can't our never constant is we change know industry in or One stands it that we challenge. every

However, for and our our focused members JetBlue crew commitments shareholders, relentlessly customers. challenges hitting JetForward, on is our outpacing with and

Thank Over open questions. up you, and we now to will it you, to Christa.

Operator

[Operator Instructions] from question with of JPMorgan. the line comes Baker Jamie First

Jamie Baker

Probably a couple for Marty.

if So to it in clear modeling guide several the at it's acceleration. quarter guide, implied we points the first compare look of full the and you're that year revenue for

X is But think XX how of points number, improvement? much shift. Slide round of You acceleration. there's just rising Basically, what example, Maybe a buckets revenue each first idiosyncratic I'm How that's modeling Yes, corporate in about JetForward? Easter is we is for of for How those So you're my did that of out to call question. should some let's the pick tide? much there? referencing.

Martin St. George

things of basically Thanks, delivering. and Jamie. move Sure. Thanks from it's rest X.X to JetForward promised second from And already easy of of all quarter Well, because frankly, first implementation chunk the that for continued we phasing points the and the improvement the quarter. the benefits the continued is Easter the question. started the obviously, first is

us It no all here basically dramatic is -- what on we change commitments. was and competitive managing delivering managing ourselves about those capacity. assumption There in can manage in a

basically things putting the our JetBlue that's of driving we're of seeing. we're and there's all It's top forecast doing. sort that numbers exogenous no baseline on So the of the factor that,

factors, normal there sort we not like But things Obviously, that. we're expecting change out numbers competitive capacity, the GDP, of right now. any CPI, consensus direction look from at

Jamie Baker

Boston. forward as at And that, a then follow-up Marty, in Okay. got schedules, double-digit to you've some just going looking on growth

You called out X international markets.

as that could so, And But likely to revenue if Boston is fair to it a RASM aspiration, that? year drag? you full relative quantify characterize

Martin St. George

it's that I'd elsewhere. I Boston the in growth than seeing getting, mean, RASM less obviously, is we're say with growth

more question anything think said the mathematical I else. than I

lift we would the say I what frankly, not back think we're realize think things Northeast, communication pre-NEA. to the talked Northeast was NEA. Boston the up is during a we bank had leisure peak were business cover still of I the of in plan to JetForward and about from basically leisure I of one given when in And entire the we we the that lot LaGuardia airplanes and we into, moved that basically,

traffic So redeployed -- originally we Asia. growth being finished LaGuardia finally Northeast back they unwinding were, in are ASMs and which that XXXX, those was where into now

Operator

next sorry, question line McKenzie -- the Daniel of with from Global. Seaport comes Your David

Daniel McKenzie

today's price, kind longer -- giving us So of you're thinking term. your setting first normalized about us stock looks it you how -- aside like are given the earnings

piece, So given first us the sorry.

all to goes if So want according if today? they just some $XXX to we add their of could should plan, to get EBIT earnings outlook million -- investors to if semblance to XXXX simply to back normalized discount

Joanna Geraghty

Thanks, Yes. Appreciate question. Dan. the

up it notch. I met Really think in cases. have and the announced they're We pulling outperformed all that many metrics JetForward. delivering of under proud guidance of July, consistently were our the team in maybe a back just momentum and

As $XXX at think about amounts. to year should year, million with you similar think and 'XX $XXX end you should million EBIT, we 'XX and of of this this

of the and on headwinds. million constructive cycling JetForward $XXX of top exiting million at backdrop, look and macro we we're Pratt of sits the some commitment of $XXX to that as against So a obviously EBIT

yes, you're it about right thinking So the way. absolutely in

even faster but and this ramp, would we linear, multiyear think, to a focused frustratingly, getting the have, sustained not here I JetBlue in we're profitability. love long-term is and back think, strategy, to on I it's

take a going time. far. it's So so But progress the little really pleased really, to with

year negative 'XX the with We op negative X. margin. ended X.X% year full X.X% when JetForward The was launched implied guide we for --

go our out X-point margin, improvement. will and a So be meeting point X.X with or commitment JetForward. a breakeven better a launched since This we're that improvement op year, to we

for the progress just good to focus really term. and So on I long executing there think continuing

Daniel McKenzie

share unit imply particular. as some on Pratt -- cadence some second CASM the we ex Or how into as impact year? you perspective we throughout trends XXXX, exit XXXX? And question directionally ex can on can groundings potentially Ursula, wondering CASM that then, Whitney head that we does could CASM cost, I'm & in the it is there And Terrific. Understood. that? ex,

Ursula Hurley

Dan, thanks Yes. for question. the

proud on team cost we some delivering that trough. laid guide last pulled and despite that we also Whitney the XXXX of down So controllable the out Pratt January, capacity & really I'm in headwinds

Here we're roughly we've delivering been the of rates telling whole driven in XXXX, elevated, step expecting well exactly you really year. very capacity is wage with maintenance last by mid-single-digit a throughout guys, we flat and what most executed that unit cost up elevated QX pilot growth. the timing as That's it's August. the as

CASM So confidence of will deliver to X% full in lot I down have come, the and the to on year team quarters will guide. the ex come a X%

the As that within Pratt peak mentioned we will I fluid. to & AOG hit XXXX, do X I remarks. beyond next does X that the look Whitney prepared think in the continue be scenario we my years, really to

the again If we to launch inflationary pressures. offset mid-single-digit of XXXX of as with that in that sit yet continue But We number, a our terms I do costs. program example, with here cost to new roughly pressures. would is of range controllable transformation see capacity inflationary flat the for JetForward, expect part in

Operator

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

Duane Pfennigwerth

So Dan's just a follow-up on question.

bridge specifically. is and that the year year quarter of XQ the the the March earlier cost of this One to outlook rest from we're getting questions

early relative had you the wondered first on shape if to So CASM thoughts any of quarter? the I XQ

Ursula Hurley

the Duane. Yes. Thanks question, for

As we do the I second to said, elevated. a there expect most head I quarter. into is down QX be as the step

well, expect from tell the but posted. here layout already can as We're are schedules probably you different not would forward that today, guiding a I capacity which

envision also do in us QX. positive I support the slightly down So which help step being capacity should a in environment,

reminder, step doesn't granted rate lap pilot what we we up so last a until the that As wage hit August. August,

we'll QX, well. a with that headwind So associated as see

Duane Pfennigwerth

Caribbean seeing you on you shift? Easter XQ the then and seeing a improvement XQ bit talking in of to the little you're Got sort it. maybe system can Marty, rest just to relative And and for expand or maybe there table. just, XQ sequentially of the and adjusted Latin, are What and Easter the -- shift XQ to what taking off

Martin St. George

with strong XXXX Sure, strong has for we're what us. maintaining San fully mostly heard seen say, first outlook, quarter been bit done customer pressure Duane. we point had actually but very of Thanks. from results consistent actually I'd little at and transatlantic has what and for the recovered we've very capacity International us. fourth a about beginning quarter is driven, A And Juan, has of Latin base well. in also it's well. Latin our

and is part I Latin. on enough us relative a again, transatlantic not strong international is the San of think, relatively basis, heard, really consistent big with a is what International big say, needle, -- we've So Juan point. I'd a for at all to move

fundamental I demand is We're right the very now. happy. for strong think overall, profile Latin So

Operator

the of TD comes Your Cowen. next question from line Fitzgerald with Tom

Thomas Fitzgerald

seeing what just you Lauderdale Fort you're touching competitive Would on in there? and mind capacity the

Martin St. George

gone a in about time had at Yes. there are that bankruptcy, Fort I mean opportunities Spirit's of the process represent may it's funny. through When of lot Lauderdale. conversations we the

in us, to reorganization is were you those look expected lot ground what exactly put I at think lot the if the important a of a had plan, And that too. important a of because they that frankly, to stake we them. it's

is Lauderdale. competitive down still Overall, capacity in Fort

we're happy down very Spirit we're a frankly, is how there. in a any Lauderdale I performing significant down expecting right we're And now. very very don't pull So with Fort good environment, from actually think but

Thomas Fitzgerald

the your in-flight apps, And Okay. helpful. investments of I'd across entertainment, CapEx That's Wi-Fi, there. perspective really arms the non-aircraft race mobile then just love and on making given your to and get kind industry

thinking and Just like size any the you're of kind Love you're focus investments areas? of your thoughts. curious how thinking

Joanna Geraghty

how in But Wi-Fi that XX Joanna. only got we've and question It's Urs and other can that I with the years. to we're we've out fleet on Wi-Fi, of stay competition, that general. from pleased thanks. is And And carrier let CapEx are on be competitive and Tom, and that a a relative fully outfitted perspective, customer eye sure close that free, claim. for Wi-Fi keeping a the in very make make preference had can very partner, we touch that we this We're ,Viasat opportunities it's performing. obviously we'll continue the continue to the to there, space.

the just CapEx? on Urs, Maybe,

Ursula Hurley

just the color maybe So some CapEx. on

So in in billion $X.X CapEx XXXX. we had

So stepping we're actually XXXX. in down

$X.X XX% billion is aircraft. with guide that $X.X of is the So billion. associated About

first So also not also the XX we're extending deliveries, we investing only the in investing do but And we AXXXs. class. of in ramp-up domestic have are the

in embedded the all guide. that's So

XX% of with non-aircraft. the remaining CapEx The associated is

your So Tom, think are those ground point, I think going. those equipment, technology, I to are dollars where airports

Operator

Your next with Research. line comes from of Wolfe question Scott the Group

Scott Group

I to heard the And make when up and up 'XX then aircraft sure right. issue that behind want us with on the again then this is ground right? Is in potentially fully in that goes Is 'XX? like that an just issue? as I GTF any it idea

Ursula Hurley

Yes.

We financially, all XX. question, to the this some the to thanks on highlighted Slide So tried guys math for Scott. give just how JetBlue you we've on is which burdensome color

in the to reminder, XXXX we're remarks, providing ground we the we a we believe are In or approaching high XXXX. in my today, had as As in the have the for mid- year we on XX I teens. mentioned peak And aircraft likely that X. prepared next guide

can 'XX work inputs aircraft chain continue of we gain to are impact the to to on of & So Pratt Obviously, further beyond. everything materially Pratt a ground, that have color, quite & and Whitney that capacity. we supply the their shop from frankly, constructively there number lot Whitney on with

year that to or it believe So continue approaching pretty peak. be remain fluid. But we'll next the does the we X,

Scott Group

haven't much Or announced timing that NEA then because And anything too can't Okay. just that is part say of about you think you JetForward? be incremental how any replacement? yet, guessing thoughts I'm on to for do but an NEA? And you would JetForward? Just

Joanna Geraghty

Thanks question. for the

acceptable having a framework partnership. now prior a right Massachusetts laid conversations of the at with the potential least obviously in discuss administration. we're The judge carriers be So that future for out under number to would

to now. So that's at, nothing looking there's but what we're announce

very a but with associated partnerships, meaningful a of terms small in JetForward, In in what's way. of there's amount very potential money nothing

Operator

comes Your Michael question of Bank. with line the next Deutsche from Linenberg

Michael Linenberg

How you as from result Just, those XX% capacity. changes? cities, discretionary withdrew change, seen mix the of Marty, redeployed you versus of you corporate your have XX a

change a customers percentage to or now you how of large about has And the out? of just you talk the that booking been sell a a the booking further maybe curve, your given meaningful mix the Can percentage maybe product? greater there and are fact around your dynamics some

Martin St. George

Mike, the thanks question. for

of leisure and say the leisure is on customers who because business, getting The who more they level, mix take first -- middle on it the business post-COVID I'll great tougher say they're thing to in like so. macro have we they leisure do mix a tougher is, run it

clear was. it's than it So less once

Antonio, penetrated seen say like think is and Minneapolis, frankly, customers of part in I a will closed us we've why have. in the San that significant we that's to mix leisure no change the weren't And working for reason carrying we we're I really business of places city What the we business great that market. because actually the lot weren't

we've So or mix change the booking significant to business no the leisure that. curve to seen

Joanna Geraghty

QX it add trough a of for if even when at is as were well, you that adjust we given leisure a sort I'd just obviously you as shift. period Easter RASM, experienced the that carrier, think I different

a the going standpoint. and And frame and really time October, all In lays changes These for depth, network isn't to number mature. to we there in time some the markets as timing linear these the early that in this it's was from capacity a of ramp. mentioned, a the are the plan announcements, meaningful I November take also have late out made Northeast slide of

Michael Linenberg

first-class, to you some Great. heard is just around that this CapEx my the of timing about think I year second, I Ursula, And of the going be think first we then class. as to tied installment

Will Or XXXX quarter that selling class? first late can JetBlue a first-class you start be XXXX selling start position the is in product? to first when

Martin St. George

that Mike, one. I'll take

design, cetera. So certification, basically et there's through the seat the coming CapEx beginning some which this year, is process of

install be first is XXXX. going actually The to in

be that benefit out how XXXX. phasing laid the speak is So in it's to the no way, there up by will of And revenue exactly in JetForward.

Operator

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

Catherine O'Brien

hearing of are seeing corporate follow a to the been that corporate this a on wanted of commentary. trends fall. again up We've Just bit pickup some

any York, more are your focusing in you Tuesdays, looking seeing New you're Wednesdays traditionally the Just of leading on like DNA, Boston know competitors leisure better. that but know sites One out your are transcon your pickup New I flights? network or your corporate York to color any there?

Martin St. George

you as small X corporate still we're amount records revenue JetBlue's right our That the now, or I'd money as of the if what quarters, is a far X of been getting setting being accounts. say we've corporate the corporate from really our case, part base. is demand at last So look

low talking a number, we're a X-digit So number. X-digit

it's number. not So gigantic a

We great are numbers. seeing

frequencies looking a enough us and on think But network the I don't Wednesdays. exists, a flying and at do I I as where we carrier. it's looking don't think see And ourselves and our big been think we're to with significant being it in network difference Tuesdays our at big at as for corporate looking

Catherine O'Brien

if the want and on don't in Got just baking GTF. it. But And then compensation maybe do don't any I to into of outlook. Pratt just, you're confirm, mind, to you from kind think statement? take? it you on think Ursula, more a when put however your you'll flow on does notice it? want we're XXXX Is something damages to to form those settlement able And the be that what going going be or to cash reach you I

be sometime any would but this, Just X from in but questions and on filled to I know January that -- when on then later? imply saying GTF helpful. questions there don't the And or XX, XXXX peak already myopic, get color is does years to you're couple peak, really X too the of want I on a now the you've

Ursula Hurley

& a to the Obviously, very Whitney with we've so Catie, as pretty highlighted situation it's Pratt to today, be fluid. business. our continues impact material

negotiations something fair frankly, quite because materiality business, to acceptable. So settle want settlement the to we the the ensure of a is that and are with we taking that while,

on I progress. that. in a timing So work It's any have don't

question, your regards just between I last that X, or quite mean In and we next to year when that say frankly, about the the XXXX. I means now peak, hit within mean, -- peak, I

and consistently And work fluidly so Pratt. with we again,

there things could so that accelerate are And this.

closely. watching so very And it we're

Operator

line from Your the of Morgan with Ravi Shanker Stanley. comes next question

Ravi Shanker

which, Some transatlantic of seeing of just seasonally in highlighted is guys in first you your weak Can there well? through quarter, you as for obviously summer talk and are upside you mainline period. what the as strength peers kind potential pointed about demand out, the kind of

Martin St. George

new 'XX. first I'd we in cities announced Thanks, for of for still all, 'XX. We've is cities new us. I these ramp Atlantic the Ravi. in -- mean for added Sure. routes say, 'XX

So I think the being I is look strength in being at partially partially our ramped. Atlantic growth and

get want as aggressive don't it. how describe too far I to as we So

important thing yields growth and us continued of Most is for mid-cabin.

the the product. net part are it's that's airplanes, that absolutely best It configuration and If growth, as net see far growth fantastic the would Atlantic. across really we really at to we yield. seeing And you the is a perspective, heavily focused. look of like the as from think very where great I we're

now. network exists So we're the very as right optimistic about the results

of almost deliveries that say into our -- XXX transatlantic XXX I will all we also deferred deliveries XXXX.

continue the with fly winter, and roughly to results, us. you're a profit is We'll we you happy choice to to we're to the summer network what see that our to domestic, nice really We're be with Atlantic going move for but I'd between get plans it's continue So now. and happy think there. right treat say less what and or you more source

Ravi Shanker

Or Great. even million follow-up, all time? the also $XX just forward future seeing pockets which revenue as over potential you just or obviously I go strength capture outperformance kind periods, upsizing target it. confirm, up end And which want of that initiatives XXXX, is from impressive. to may for is maybe very in are a upside, the Got of

Martin St. George

right all forward. moved look forward. at good seating and got look as to does obviously preferred far We'll we pretty move does the things forward. as it far and But watching it how that we've Basic, be it as So like as visibility keep like now, going look Blue

of this I'm we'll the initiations has. that not JetForward, frankly, hopefully, just very saying And grow. at has forward won't as optimistic I'm we've And in that all 'XX. we're come general. grow some ones But in the as launched fundamentally, see already it excited that not point about we that grow,

So we're excited. launching very EvenMore actually with just Again, today.

So that. excited we're actually very about

Operator

comes Your from Syth of Savi James. next with Raymond the line question

Savanthi Syth

Northeast like to capacity that in more mentioned was bit I I routes cities and Tom's you can you Marty, seeing you Orlando, the a which out think you down year-over-year competitive And in kind noted Florida. competitive pressure also little you're too. as question, the wondering is But capacity. and that's case in seems if color, provide pressures called I Florida? Florida of of Northeast like the it ask, could or kind

Martin St. George

on Boston. perspective, a to going pressure competitive competitive not capacity And most then I'm give of lot that. in clearly, capacity a has color the from been

But the in trends in good. not in Orlando, yes, Lauderdale, general, I'm -- are actually

some look significantly as sticking Boston. of I of the them other But not think cities, at out I don't really as any like good. other [indiscernible] than

Savanthi Syth

Ursula, might thought plan, had I Got curious, it. in of was out. XXXX the it of just come kind you that? fleet what shifted drove helpful. on like that And the That's looks AXXXs are some of kind

products question, And CapEx of premium is aircraft part just is meaningful? investment and that the really of Or kind the meaningful? the on just that on not investment the in

Ursula Hurley

order the fluid delays books Yes. with have been Savi, such. aircraft really and

we the So our from just timing Airbus. adjusted recent reflect most information delivery to schedule

going point, well of at airplanes to back terms when tailwind. you And issue. look to years, were point, some And a a we've to hitting & will aircraft So in get 'XX AOG puts between get within your 'XX. I will And the we're at JetBlue a pretty and and there as peak become and order takes everyone, situation at lot our just book few X X talked it this up we remind to think book, lines AOG. mention, I back. 'XX due Whitney in to aircraft about overarching order as want today. do And you next the Pratt actually the we will the beyond, look

the portion small to a in be regards as that is next the to question start-up into of program. for ramp is around The over first the going That XXXX And few years. the your domestic CapEx. mentioned, investment approximately of guide, investment the million $XXX In last Marty included just of class.

AXXX do these I to extensions, between remind class timely first are mean, I as the the as and accretive a manner. But everyone, very well want domestic positive I mean ROI in

we're feel investments about making. that good the I So

Operator

next comes Your with the Financial. Wadewitz Tom line question from UBS of

Thomas Wadewitz

circle RASM to seems back XQ to wanted me just Q&A, than I Yes. the RASM. is off bit a where bit your that outlook one kicked the industry. fair big think, just of weaker about to, It I concerns asking the Jamie a little looks

the we you to industry? performance for for framework? the second in back for to what broader with that be half the RASM how for line of Would you Or case? think see or kind expect JetBlue get what's the the XQ Marty, like do about framework

Martin St. George

Well, Tom, thanks the question. for

really So good right first, results Again, we're that peak. being fleshing fourth very let's the now. focused numbers that happy the in about with talk and sequential talked quarter we're about on we very overperformance, the

data. at of normal of the first quarter got in years' trending. actually sequence first the trend you above look that historical and XX As fourth you we've worth you We're if quarter, -- quarter RASM, to

producing of time one actually period, 'XX is normally would see of first to JetForward. what we're quarter and for you attribute that that in than I higher So

capacity of headwind. I say, will industry, versus face competitive a the the do rest we

are of think big capacity actually United X.X%. they're X, negative. all them is X%, competitive I you under X.X%, that look facing if like at numbers the some

Our competitive capacity X%. is number

I out at headwinds that feel I already. to of about in laid us. the we looking think initiatives a the RASM, things all seeing I JetForward, lot give So far against the where on as the that working great And we're credit we've first stand given quarter, as

from across headwind With quarter improvements the first tailwind right year, the we get in as respect a quarter. obviously, the rest in comes the of back second Easter to the

at guy second. a in guy points So X.X that X.X first come the back good points bad will the in

assumption not as or competitive I think -- the coming at to There's that there's the said down to to X% to a I no And back X.X%. beginning, sort capacity be big year, I we're the very want competitive capacity secret any back go no clear, through down. making about point Jamie assumption of we goes

at We're industry basically as I think right the right stands at looking is industry now. X.X% it now. the

the of out. think as And lot just in plan the so XX quarter there we demand how I market, peak. [indiscernible] with -- very, places of the peak laid what is the especially we've execution happened the I to where big Florida, we to very [indiscernible] especially as quickly, the seen of And with as A years had the JetForward, fourth think like we're able during was far success market what the that our take. ramping and happy of far seen it by in network this we've changes drive were served the one we've competitors with in

numbers So are I to big want some a feel stress, it very we control. as of of to bullish just industry change we as get to is sort need I can as far stuff JetForward games core forward. there X%. That X% no goes to about

Thomas Wadewitz

year, to for And still looking next at follow-up significant to of of to breakeven? you'd about think key this question, like about It year, wanted the free use how just a seem would kind levers ask Great. potential be cash. fairly get we the and timing potentially Okay. cash

is margin Or a so the in I might of offer, more could come is kind 'XX? about JetForward driven So keep of matter wanted on your up? operating that you to see and by going of that a if just any multi get thoughts kind CapEx reduction 'XX, it

Ursula Hurley

Thanks the Tom. question, for

consistent execute we healthy it get the again priority. paves aircraft the which on the business deferral get to and way year, X number us executed us to for So JetForward is and in profitability, last and

X free of Number with flow the I positive order within with And out the do means and a flow is the like in Forward JetForward, cash progression Jet the is getting the timing positive. feel lays get of book program. in just the cash to way free the there deferral expected to

start delevering Priority be to number then X the sheet. balance will

today want We don't metrics competitive our more mistake. down back where to sheet So like to we make get no and metrics. lie reasonable balance

consistent profitability about balance delever before to -- steps taking continue we to got can talk sheet. the we on get got but to JetForward, executing -- So we

Operator

with question comes of line Steve next Citi. Trent Your from the

Stephen Trent

today the up going alliances gyrations. think, American some place? I some the I what as thinking for Group on about could If Latin through ones of said sort maybe any but about Scott of U.S., earlier. are how on alliance that you potential follow the new asked question, existing what given opportunities oversees in Great And color you're maybe are airlines

Martin St. George

XX mentioning, thanks I lot guess, or the we the across worth Steve, carriers. a XX international partners for first, alliance Well, world, of including have question.

we're international we lift gateway York especially a carriers, important connecting is I lot that and lucky very, there. think New fly for very a of

getting you're access airlines there, excuse higher. -- interior with the the if to other aligned of partner So the U.S., great a me fares be one as -- not where far tend as to we're

continue We this And to even carriers. a grow that we think just British quarter continues as grow. with portfolio year, Airways that actually limited partnership domestic we third added negotiate in to of I the

we not We're I your the make taking work on partnership, there. domestic sense that of on a us think eye off opportunities for ball while there's on might partnership. what certainly type

Stephen Trent

be piece for in not pie on it, of fairly your early some significant your cost guessing my you terms are a there Okay. you'd small exits I'm and for the some the back follow-up, of I event a kind offering pilots. that these older packages is Marty. Appreciate would cash this And offer? of labor guys of recall of

Joanna Geraghty

offering forward JetBlue our for they something retirements win-win who pilots some looking are it's ready our early a to retire. of after Obviously, thanks. for from and pursue think I some pilots, No, to

of with So have we ground be continues costs issue. now where to a labor we in the some world do it a have we manage that Whitney right on aircraft the & many how elevated on Pratt focus as our

Ursula Hurley

outflow. will there no cash major And be Not material.

Joanna Geraghty

Correct.

Operator

And gentlemen, now session. turn call that to comments. does Joanna conclude closing And over our I the and will question-and-answer ladies for

Joanna Geraghty

an where Very perspective, operating and JetForward breakeven those that or to set commitment we margin better so When us the from commitments happy July, to out came we joining I'm that XXXX a maintaining to pleased is Thanks with do. launched answer year for team today. a your were questions. we we in out

got is is ramping not which month the at progress And JetForward, multiyear since next We've quarter momentum, year, This we've revenue in today, many great really of guidance It last strategy. reliability, a XXXX beat year. of which outperformed great and our premier that's on our as well. end on which launching costs linear. first in these launched programs launches even domestic card, XXXX, class start EvenMore, launching or is the whether every the

So we happening. have a lot

number there'll of through takes the And puts be quarter. a and

term. long the on is focus our So

Our on focus annual better, expectation is breakeven promising we to or start. are a that off and of hitting

look a the you through you the got of another X margin as 'XX X.X to cycle X points, And situation. expect If and in which 'XX midpoint from JetForward 'XX. point, of that our we & headwind we've guide can then X will Pratt at particular of tailwind Whitney of points become

& a with should Whitney, Pratt JetForward, couple at X you look points on. So improvement margin expect operating you all in from when all, of XXXX

operating to look we with you ball, your I'm program the for guide keeping margin. annual the time executing on better to and So our today, the of call. we're how is and pleased it talking or eye the for and with Thanks forward on breakeven next which

Operator

you this today's conference Ladies disconnect. and does now your call. may for conclude and you gentlemen, Thank participation,

JetBlue Airways (JBLU) 28 Jan 252024 Q4 Earnings call transcript