In This Article:
-
Adjusted Operating Margin: 0.8% for Q4 2024, over 2 points better than 2023.
-
Adjusted Operating Income: $18 million for Q4 2024.
-
Revenue Initiatives: Generated $395 million in 2024, $95 million over the target.
-
Completion Factor: 99% in Q4 2024.
-
Revenue Growth: Unit revenue grew 3.2% year-over-year in Q4 2024.
-
CASM ex Fuel Growth: 6.6% year-over-year for full year 2024.
-
Total Liquidity: $3.9 billion at the end of 2024.
-
CapEx Forecast for 2025: Approximately $1.4 billion.
-
Fleet Plan for 2025: 24 deliveries including 20 A220s and four A321neos.
Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
JetBlue Airways Corp (NASDAQ:JBLU) achieved a positive adjusted operating margin of 0.8% in Q4 2024, over 2 points better than in 2023.
-
The company launched its strategic plan, JetForward, which is fundamental to achieving sustained profitability.
-
Operational improvements were noted, with on-time performance improving by 6 points and a Net Promoter Score increase of nearly 10 points.
-
JetBlue Airways Corp (NASDAQ:JBLU) successfully deferred $3 billion of capital expenditures to 2030 and beyond, strengthening its liquidity position.
-
The company exceeded its 2024 revenue initiative forecast by $95 million, generating $395 million in revenue for the year.
Negative Points
-
JetBlue Airways Corp (NASDAQ:JBLU) was not profitable for the full year 2024, despite progress in operating margin expansion.
-
The company faces ongoing challenges with Pratt & Whitney aircraft groundings, impacting operating margins by approximately 2.5 points in 2024 and expected to grow to 3 points in 2025.
-
Competitive capacity pressures, particularly in Boston, are affecting revenue performance.
-
CASM ex-fuel growth is expected to remain elevated in the first quarter of 2025, driven by strategic capacity reductions and maintenance timing.
-
The Pratt & Whitney engine issue is expected to continue impacting operations, with aircraft on the ground rising to the mid- to high teens in 2025.
Q & A Highlights
Q: How should we think about the revenue acceleration in the first quarter compared to the full year guide? A: Martin St. George, President: The first quarter includes a 1.5-point shift due to Easter moving to the second quarter. The rest of the improvement is from the continued implementation of JetForward and the benefits from our initiatives. We're not assuming any dramatic changes in competitive capacity; it's about managing what we can control.