JetBlue Airways Corporation Q2 FY2025 earnings call

• Joanna Geraghty noted progress with JetForward, met/exceeded guidance across key metrics, modest operating profit, significant customer satisfaction gains (Net Promoter Score up double digits YOY), demand stabilized/accelerated with close-in bookings strength, weather/ATC disruptions in July, Blue Sky collaboration with United approved by DOT, improved aircraft on the ground forecast, network optimization, products/perks generating EBIT, cost transformation with 100 initiatives, seventh consecutive quarterly cost beat. • Marty St. George highlighted JetBlue being top in first/business class customer satisfaction, BlueSky's value drivers (interline agreement, loyalty growth, Paisly business), close-in bookings acceleration, Q2 revenue results, unit revenue progression, third quarter guidance, fleet plan improvements (AOG forecast, fleet adjustments), cost results for Q2 and outlook for Q3/full year.

No specific detailed breakdown of product segments by revenue contribution provided in the transcript.

• Third quarter unit revenue expected to be down 6%-2% on ASMs down 1%-2%. • Full year CASM ex fuel expected up 5%-7% on 1.5 fewer points of ASMs. • BlueSky expected to contribute incremental $50 million in EBIT through 2027, increasing JetForward EBIT target to $850M-$950M through 2027. • Fleet AOG forecast improved, expecting to return to capacity growth in 2026.

• Weather and ATC-related disruptions. • Uncertain macro backdrop impacting demand. • Pratt & Whitney GTF-related aircraft groundings previously impacting capacity and unit costs. • Elevated levels of close-in bookings and choppy macro environment affecting revenue forecast.

Q: Dan McKenzie asked about growth from diminishing AOG and pilot headcount A: Ursula L. Hurley and Joanna L. Geraghty responded discussing AOG forecast improvement and pilot staffing management Q: Tom Fitzgerald asked about JetForward buckets A: Joanna L. Geraghty responded on even spread across buckets and network ramping as a driver Q: Jamie Baker asked about BlueSky and competitor premium products A: Joanna L. Geraghty and Marty St. George responded on BlueSky implementation and no impact from competitors' premium products Q: Savi Syth asked about capacity growth and cost efficiency A: Ursula L. Hurley responded on AOG improvement driving efficiency Q: Mike Linenberg asked about close-in bookings and United partnership A: Marty St. George and Joanna L. Geraghty responded on close-in bookings as temporary and United partnership benefits Q: Catherine O'Brien asked about RASM progression and September forecast A: Marty St. George responded on RASM progression and September outlook Q: Duane Pfennigwerth asked about Paisly business margins A: Marty St. George responded on Paisly's commission-based model and high EBIT margins Q: Atul Maheswari asked about fourth quarter RASM and growth concentration A: Joanna L. Geraghty responded on growth concentration and managing RASM through levers Q: Ravi Shanker asked about BlueSky implementation stages and fourth quarter supply A: Joanna L. Geraghty and Marty St. George responded on BlueSky implementation stages and fourth quarter supply setup Q: Conor Cunningham asked about fourth quarter capacity setup and fleet transaction CASM ex benefit A: Ursula L. Hurley responded on fourth quarter capacity setup and fleet transaction CASM ex benefit