Better-than-expected JetBlue earnings pave path to profitability
October 30, 2024
Strong Q3 2024 performance – led by improved operational reliability and positive unit revenue – has positioned JetBlue on a path back to profitability, with the carrier’s JetForward strategy showing “encouraging early results”.
Despite adjusting for the impact of CrowdStrike and Hurricane Milton, JetBlue ended the quarter with an adjusted operating loss of “just” $11 million, about $130 million better than its July expectations.
During the quarter, JetBlue also met or exceeded all guidance metrics; reporting an operating margin five points better than July expectations and a revenue performance “bolstered by continues success of 2024 revenue initiative, which have ramped to around $275 million of the $300 million annual target,” explained the airline.
“All these investments are showing signs of traction,” explained JetBlue chief executive officer Joanna Geraghty. In particular, the September amendment to JetBlue’s ‘Blue Basic’ fare – revised to include a free carry-on bag for economy customers – is “performing ahead of expectations,” continued Geraghty. President Martin St. George added that premium segments “continued to perform with revenue up double digits year over year”.
However, Geraghty cautioned that long-term capacity planning continues to be challenged with aircraft on the ground, with JetBlue remaining in discussions with engine manufacturer Pratt & Whitney “over future AOGs, expectations, and compensation”. “Not having clear line of sight to our longer-term capacity is certainly frustrating, but we must remain focused on controlling what we can, and this is at the heart of JetForward,” she continued.
