JetBlue's Q4 Earnings: A Mixed Bag, Positive Outlook for 2025

JetBlue Airways (JBLU) has released its fourth quarter 2024 earnings, and the results are a mixed bag. While the airline reported a smaller-than-expected loss, it also announced a decline in Q1 capacity and a positive outlook for operating margins in 2025. Let's dive into the details and explore what these results mean for investors.



Smaller Than Expected Loss

JetBlue reported a GAAP net loss of $44 million or $(0.13) per share for Q4 2024, compared to an estimated EPS of -0.34. This loss is an improvement from the previous quarter and reflects the airline's efforts to control costs and improve operational efficiency. The adjusted operating margin improved to 0.8%, up from 0.4% in the previous quarter.



| Metric | Q4 2024 | Q4 2023 | Change |
| --- | --- | --- | --- |
| Operating Revenue | $2.3 billion | $2.325 billion | -2.1% |
| Net Loss | $(44) million | $(104) million | 57.5% |
| Operating Margin | 0.7% | 2.9% | -3.6 pts |

Q1 Capacity Decline

JetBlue announced a slight decline in Q1 2025 capacity, with a 5.1% year-over-year decrease. This decline is primarily due to ongoing engine issues with Pratt & Whitney's Geared Turbofan (GTF) engines, which have grounded several of the airline's aircraft. JetBlue expects this capacity reduction to continue throughout 2025, with an average of 11 aircraft out of service due to the recall.



Positive Operating Margin Outlook for 2025

Despite the capacity decline, JetBlue remains optimistic about its financial performance in 2025. The airline expects to achieve a positive operating margin for the full year, driven by its JetForward strategy and continued cost control efforts. JetBlue's JetForward initiative contributed $90 million to EBIT in 2024, exceeding the original forecast by $95 million.

| Year | EBIT Contribution |
| --- | --- |
| 2024 (Actual) | $90 million |
| 2025 (Forecast) | $800 - $900 million |

Looking Ahead

JetBlue's Q4 earnings reflect the airline's ongoing efforts to control costs and improve operational efficiency. While the capacity decline is a concern, the airline's positive outlook for 2025 suggests that JetBlue is well-positioned to navigate the challenges ahead. Investors should keep an eye on JetBlue's progress in 2025, as the airline works to achieve its goal of a positive operating margin for the full year.