JetBlue return to profitability ‘impeded by macroeconomic uncertainty’

JetBlue reduced annual losses by a quarter in 2025 to $602 million but macroeconomic uncertainty prevented a move out of the red.

 

The year marked a “meaningful step forward” for US low cost carrier, declared chief executive Joanna Geraghty.

   

This came as passenger carryings reduced by 2.9% year on year to 40.5 million as capacity declined by 1.6%.

 

Annual operating revenue was down by 2.3% to $9.1 billion.

 

The airline hailed efforts through its JetForward initiative first revealed in 2024 to restructure its network, optimise operations and simply its fleet to raise profitability.

 

JetForward is targeting $310 million of additional incremental earnings before interest and taxes (EBIT) in 2026. This will keep JetBlue on track to deliver $850 to $950 million of incremental EBIT for 2027.

 

Geraghty said: "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. 

 

“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. 

 

“I want to thank our 23,000 crew members, your commitment to caring for our customers and each other, despite many unexpected challenges we faced throughout the year, is truly inspiring.”

 

The final three months of 2025 saw losses mount to $177 million from $44 million in the same period a year earlier.

 

However, the airline’s president Marty St George said: "We saw strong underlying demand during the quarter and I’m very encouraged this momentum has carried forward into early 2026. 

 

“Additionally, I am optimistic the constructive macroeconomic environment and industry capacity backdrop entering the year will support continued improvement. 

 

"We have many exciting initiatives rolling out this year, including executing critical implementation milestones for our Blue Sky collaboration with United, opening our Boston lounge and rolling out domestic first class."

  

Chief financial officer Ursula Hurley added: "In 2025, our team stayed focused on what we could control, adjusting capacity, managing costs, and continuing to execute JetForward despite a challenging backdrop. 

 

"Delivering meaningful incremental JetForward EBIT while holding unit costs within our original expectations demonstrates the discipline we are building across the business.

 

"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.”