JetBlue Airways Q2 Earnings Call Highlights

Key Points

• Second-quarter revenue rose 10.9% year over year as demand remained resilient despite higher fares, fuel costs and weather-related disruptions. JetBlue restored its full-year outlook, projecting a negative 2% to negative 5% operating margin and third-quarter RASM growth of 12.5% to 16.5%.
• JetForward generated $165 million in incremental EBIT during the first half of 2026, with the company reiterating its goal of at least $310 million for the full year and sustained operating profitability in 2027.
• JetBlue is concentrating second-half capacity growth in Fort Lauderdale, targeting more than 150 daily flights by late 2026 or early 2027. New initiatives—including BlueFirst premium seating and loyalty partnerships—are expected to provide larger revenue and margin contributions from 2028 onward.

JetBlue Airways NASDAQ: JBLU said second-quarter revenue rose 10.9% from a year earlier as demand remained resilient across its network, including premium and main-cabin products, despite higher fares and operational disruptions from thunderstorms, air traffic control staffing constraints and elevated fuel prices.

Chief Executive Officer Joanna Geraghty said the airline’s JetForward turnaround plan continued to produce measurable financial benefits. JetBlue generated $165 million of incremental EBIT from the program in the first half of 2026, bringing cumulative benefits to $470 million. The company reiterated its expectation for at least $310 million of incremental EBIT from JetForward this year.

“JetForward is doing exactly what we said it would do,” Geraghty said, adding that the airline expects the initiative to support a return to sustained operating profitability in 2027.

Outlook Restored as Demand Holds Up

JetBlue restored its full-year outlook after withdrawing it in the prior quarter amid a rapidly changing external environment. The company now expects a full-year operating margin between negative 2% and negative 5%, with the midpoint implying second-half operating-margin improvement of about 3.5 percentage points from a year earlier.

For the third quarter, JetBlue forecast capacity growth of 3% to 6% year over year and revenue per available seat mile, or RASM, growth of 12.5% to 16.5%. For the full year, it projected capacity growth of 1.5% to 3.5% and RASM growth of 10% to 12.5%.

President Marty St. George said consumer demand remained strong throughout the booking curve, including close-in travel, and that the trend had continued into the third quarter. He said JetBlue did not see material signs that higher fares were reducing demand.

The company said it recovered nearly 50% of higher fuel costs through pricing and capacity actions during the second quarter, above its previous expectation of at least 40%. JetBlue continues to target 100% fuel-cost recapture by early 2027, assuming demand remains strong.

Using the forward fuel curve as of July 10, Chief Financial Officer Ursula Hurley said the airline expected fuel prices of $3.49 per gallon for both the third quarter and full year. JetBlue widened its operating-margin outlook range because of fuel-price volatility.

Fort Lauderdale Expansion Takes Center Stage

JetBlue is concentrating its incremental network growth in Fort Lauderdale, where it has moved to expand following Spirit Airlines’ exit from the market. The airline expects to operate more than 150 daily flights from Fort Lauderdale by the end of 2026 or early 2027, representing its largest schedule ever at the airport and its largest Mint presence there.

Fort Lauderdale revenue increased 11% in the second quarter despite capacity growth of nearly 40%, according to St. George. The airline recently introduced a more structured schedule with two southbound and two northbound banks intended to improve connections to the Caribbean and Latin America.

JetBlue said all of its net capacity growth in the second half is expected to come from Fort Lauderdale, while capacity across the rest of the network is expected to decline year over year. The company reduced its fourth-quarter schedule by approximately one point in mid-July as fuel prices rose.

The airline is working with Broward County Aviation Department on additional gate leases, although St. George said international arrivals remain constrained at the airport. JetBlue is also pursuing a return to LaGuardia Airport’s Marine Air Terminal, which executives said would offer lower operating costs than Terminal B.

BlueFirst and Loyalty Initiatives Expected to Build

JetBlue plans to begin selling its new domestic first-class product, BlueFirst, this fall. St. George said the first aircraft equipped with BlueFirst may not be monetized, but the airline expects to begin selling the product once a second aircraft enters service. Most retrofit work is expected to be completed by the end of 2027, with the full revenue and margin contribution building in 2028 and beyond.

At full run rate, JetBlue expects BlueFirst to support nearly five points of RASM growth. St. George said the contribution will be minimal in the fourth quarter of 2026 and that a full run rate is more likely in late 2028 or 2029.

The company also reported momentum in loyalty. New card acquisitions rose nearly 40% during the quarter, while loyalty remuneration increased 21%. In South Florida, TrueBlue enrollments grew 44% and co-brand acquisitions more than doubled year over year.

JetBlue said its Blue Sky partnership reached a milestone in May with reciprocal loyalty benefits for elite members. Paisly, the company’s travel-products platform, has begun distributing United’s car-rental products through the Paisly-powered Miles+ travel offering and plans to add hotel offerings later this year.

Costs, Liquidity and Longer-Term Targets

Second-quarter CASM excluding fuel increased 2.4% year over year, about 1.5 points better than the midpoint of JetBlue’s guidance. The airline expects third-quarter CASM ex-fuel growth of 2.5% to 4.5% and full-year growth of 2% to 4%.

Hurley cited digital tools, technology modernization and broader use of data science in operations as key sources of cost savings. JetBlue said it expects non-fuel unit-cost growth to moderate in the second half as JetForward savings initiatives take hold.

The company completed a $500 million aircraft-backed financing transaction during the quarter and ended the period with $2.2 billion in cash and investment securities, excluding a $600 million undrawn credit facility. Hurley said the financing carried an average rate of 6.5% and includes a $250 million accordion feature at the same rate.

JetBlue also reached an initial $105 million settlement with Pratt & Whitney covering 2024 and 2025 disruptions. Hurley said 80% of the settlement will reduce operating expense through the end of 2027, while 20% will reduce capital expenditures. About 25% of the settlement is expected to affect 2026, with the remainder affecting 2027.

Looking further ahead, JetBlue expects JetForward to generate $850 million to $950 million of incremental EBIT by the end of 2027 and approximately $1.2 billion annually in 2028 and beyond. The company said it targets at least $1 in earnings per share in 2028, based on continued demand strength and an assumed average jet-fuel price of $3 per gallon.

About JetBlue Airways (NASDAQ:JBLU)

JetBlue Airways Corporation is a low-cost scheduled passenger airline headquartered in Long Island City, New York. Since commencing service in 2000, the carrier has built a reputation for combining competitive fares with enhanced onboard amenities, including free in-flight entertainment, complimentary snacks and beverages, and onboard Wi-Fi. JetBlue operates a single fleet type of Airbus A320 family and Embraer 190 aircraft, which supports its focus on efficiency and operational consistency.

The airline's core offerings include economy-class travel and a premium business-class product known as Mint, which features lie-flat seats, curated culinary options and elevated service on select transcontinental and international routes.

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