JetBlue Airways Updates Q3 Guidance with Flat ASMs and Lower RASM

JetBlue Airways has raised its Q3 2025 guidance, citing solid air travel demand and improved operational performance. The company now expects available seat miles to be flat to up 1% YoY and operating revenue per ASM to decline 1.5%-4% YoY, up from the prior guidance of down 1%-2%. JetBlue also lowered its fuel cost guidance and reduced capital expenditures for the quarter.

JetBlue Airways Corporation (NASDAQ: JBLU) has updated its third-quarter 2025 financial outlook, reflecting robust air travel demand and improved operational performance. The airline reported that air travel demand remained strong throughout the peak summer season, extending through August and the Labor Day holiday [1]. JetBlue highlighted particularly strong bookings within 14 days of travel during this period.

The company revised its revenue per available seat mile (RASM) guidance to a decline of 1.5% to 4.0% year-over-year, improving from the prior range of a 2.0% to 6.0% decline. Available seat miles (ASM) are now expected to grow 0% to 1.0% year-over-year, compared with the previous range of -1.0% to +2.0% [1]. JetBlue also lowered its cost per available seat mile excluding fuel (CASM ex-fuel) guidance to an increase of 3.5% to 5.5% year-over-year, an improvement from the prior 4.0% to 6.0% range. The company attributed the better-than-expected performance to strong operations in August and continued execution of cost-saving initiatives [1].

Fuel price guidance was reduced to $2.45–$2.55 per gallon, down from the previous range of $2.50–$2.65 per gallon, reflecting declining fuel costs since the last update. Capital expenditures for the quarter are now projected at roughly $325 million, compared with the previous estimate of $375 million [1]. The updated guidance reflects data available as of the press release date, with the previous guidance issued on July 29, 2025 [1].

JetBlue's optimism is not only reflected in its own performance but also has implications for the broader airline sector. Raymond James analyst Savanthi Syth noted that the continued strong demand for air travel through the fall and potentially into the year-end suggests positive trends for other U.S. airlines [2].

Additionally, JetBlue has announced a strategic partnership with Amazon.com Inc.'s Project Kuiper, which aims to provide faster and more reliable onboard Wi-Fi connectivity [2]. This partnership positions JetBlue as a leader in integrating advanced satellite broadband technology, further enhancing its competitive edge.

Shares of JetBlue have dropped about 33% this year, which contrasts with gains of about 4% for the U.S. Global Jets ETF JETS and about 10% for the S&P 500 index SPX [2].

References:
[1] https://investorshub.advfn.com/market-news/article/15743/jetblue-raises-q3-2025-outlook-on-strong-summer-travel-demand
[2] https://www.marketwatch.com/story/jetblue-sees-summer-air-travel-demand-stretching-into-fall-heres-how-it-impacts-other-airlines-96acdb89