JetBlue Airways has pulled back its full-year forecast after worsening travel demand and weak consumer sentiment cut into first-quarter revenue, executives said in an earnings release and call on April 29.
The New York-based airline reported a net loss of $208 million, or 59 cents per share, as total operating revenue declined by 3.1 percent to $2.1 billion. Although unit revenue—revenue per available seat—rose by 1.3 percent year over year, overall demand fell as fewer passengers booked flights during off-peak periods.
“The relatively strong booking trends we saw throughout January deteriorated into February and worsened further in March,” CEO Joanna Geraghty said during the company’s earnings call on Tuesday.
“As we look to the second half of the year, the outlook remains unpredictable, and given macroeconomic uncertainty, we are not reaffirming our full year guidance.”
She said the airline plans to issue an updated forecast later in the year once there is “better visibility.”
The company said it had made aggressive capacity cuts in response to declining travel demand, removing more than 5 percent of the previously planned flights for the second quarter. Adjustments have focused on underperforming times, such as Tuesday and Wednesday flights in the Northeast, where JetBlue said demand has dropped more sharply than in other regions.
JetBlue now expects second-quarter unit revenue to decline between 3.5 percent and 7.5 percent, with capacity down as much as 3.5 percent. Executives said bookings have stabilized over the past few weeks but that the company is not expecting a near-term recovery.
Despite overall challenges, JetBlue reported stronger performance in premium and international segments.
Transatlantic revenue per seat rose by 28 percent from last year, even as the company cut capacity by 25 percent on those routes, reflecting more efficient scheduling and steady demand from U.S. travelers.
JetBlue emphasized that its liquidity remains strong, with $3.8 billion in cash and short-term investments and more than $5 billion in unencumbered assets. It raised $3.2 billion last year and deferred $3 billion in aircraft deliveries to the 2030s to reduce spending.
The airline also said it does not expect a significant impact from tariffs in 2025.
“Most of our upcoming aircraft deliveries are assembled in the United States,” Chief Financial Officer Ursula Hurley said.
Executives reiterated their confidence in the company’s long-term JetForward plan, which aims to improve operational performance, expand premium offerings, and grow loyalty revenue. Geraghty said the company is “leaning into” experience from past downturns, including the 2008 financial crisis and the COVID-19 pandemic.
“Obviously, the macro backdrop is challenging, and it may delay some of the JetForward earnings, but these pillars are working,” Geraghty said. “The strategy is working, and so we need a little runway to complete executing it, but at the end of the day, the brand, the product offerings—they’re super strong, and that’s what drives performance.”
