JetBlue Airways Corp. (JBLU) reported fourth-quarter 2025 results Tuesday that painted a picture of an airline making real progress on its turnaround plan, even if the bottom line isn't quite there yet. Investors weren't entirely convinced, sending shares lower in premarket trading.
The headline number that management wants you to focus on: JetBlue's JetForward strategy delivered $305 million of incremental EBIT contribution in 2025, beating the company's own $290 million expectation for the first full calendar year of the program. That's the kind of overachievement airlines love to highlight when other metrics look less impressive.
The Numbers Behind the Headlines
For the fourth quarter, JetBlue posted a net loss of $177 million, or 48 cents per share, compared with a net loss of $44 million, or 13 cents per share, in the same period last year. On an adjusted basis, the loss came to 49 cents per share, missing the consensus estimate for a 45-cent loss. Revenue of $2.240 billion, however, topped the $2.225 billion analysts were expecting.
Operating revenue totaled $2.244 billion, down 1.5% year over year as the airline trimmed capacity by 1.6%. But here's where things get interesting: operating revenue per available seat mile actually increased 0.2%, beating the company's own guidance that called for anywhere from a 4.0% decline to flat performance. Management credited underlying demand strength along with better-than-expected loyalty and ancillary revenue for the surprise.
Load factor for the quarter came in at 81.5%, down 0.7 percentage points from the prior year. Operating income swung to a loss of $100 million from a gain of $17 million in the year-ago period, pushing operating margin to negative 4.5% versus positive 0.7% last year.
On the cost side, CASM increased 5.4% year over year, while CASM excluding fuel rose 6.7%. The average fuel price was $2.51 per gallon.
Getting Better at the Basics
One bright spot worth noting: operational reliability improved for the second consecutive year. On-time departures increased nearly two points year over year, while Net Promoter Score rose eight points from a year earlier and jumped 17 points over the past two years. Those aren't just vanity metrics—better operations mean happier customers and lower costs from irregular operations.
Full-Year Picture and What's Next
For all of 2025, JetBlue reported operating revenue of $9.062 billion, down 2.3% year over year, and a net loss of $602 million, or $1.66 per share. Full-year load factor was 82.4%, down 0.8 percentage points year over year.
The airline closed the year with $1.946 billion in cash and cash equivalents against total debt of $8.498 billion. Liquidity stood at $2.5 billion at quarter-end, excluding a $600 million revolving credit facility that remains undrawn.
"In the first full year of JetForward, we made measurable progress improving reliability, strengthening customer satisfaction, and advancing our strategic priorities, even amid a challenging operating environment," CEO Joanna Geraghty said. "While macroeconomic uncertainty impeded our return to profitability in 2025, we have proof points JetForward is working and positioning us for improved financial performance in 2026."
CFO Ursula Hurley struck a similar tone, emphasizing what the team could control. "In 2025, our team stayed focused on what we could control, adjusting capacity, managing costs, and continuing to execute JetForward despite a challenging backdrop," Hurley said. "As we look ahead, we are focused on translating this progress into improved profitability. We are returning to growth, our JetForward initiatives are ramping with more to come this year, and our cost growth is low—all supporting a path to breakeven or better operating profitability."
Looking forward, the airline is targeting $310 million of additional incremental EBIT in 2026, which would keep it on track to reach its $850 million to $950 million incremental EBIT goal for 2027.
Price Action: JetBlue Airways shares were down 5.91% at $4.78 during premarket trading on Tuesday.