JetBlue reveals Q1 results, to announce commercial tie-up with United Airlines  

US carrier JetBlue Airways has just announced its first quarter 2025 results, which show that the airline is continuing to face financial challenges as the demand for US domestic travel cools. However, on a more positive note, the company is expected to announce a major commercial tie-up with US giant United Airlines in the coming week, according to sources close to the negotiations.

During the first quarter of 2025 (January to March), the airline recorded a net loss of US$208 million. Operating revenues reached $2.1 billion for the first quarter (1Q25), a decrease of 3.1% year-on-year. Meanwhile, operating expenses of $2.3 billion were logged for 1Q25, a decrease of 21% over 1Q24.

JetBlue’s operating expense per available seat mile (“CASM”) for 1Q25 decreased 17.4% year-on-year, while operating expense per available seat mile, excluding fuel, other non-airline operating expenses, and special items, for the first quarter of 2025 increased 8.3% versus 1Q24. Overall system capacity decreased by 4.3% year-on-year, while the airline’s completion factor for the 1Q25 period came in at 98.6%.

Angel DiBilio / ShutterstockThe carrier ended the quarter with US$3.8 billion in liquidity, which, according to the carrier, will allow it to continue executing the airline’s multi-year JetForward long-term restructuring and cost-cutting plan.

“During the first quarter, we delivered a strong operation and efficiently executed on costs. JetForward is ramping well, and we are focused on successfully managing what we can control,” said Joanna Geraghty, JetBlue’s chief executive officer. “We also acted urgently to manage near-term revenue uncertainty. We were the first carrier to make meaningful capacity adjustments, swiftly moving to better match supply with demand,” she added.

Geraghty commented that the airline will continue to monitor the evolving macroeconomic backdrop in the US and to evaluate all available levers to boost profitability and preserve cash. This includes additional capacity reductions, targeted cost savings, and further evaluation of the fleet retirement schedule. Given the uncertainty in the US market, with many analysts predicting a recession later in 2025, Geraghty added that JetBlue “will not be reaffirming our prior full-year guidance.”

Markus Mainka / ShutterstockIn a statement to investors, the CEO said that there are early signs that various elements of the airline’s JetForward program are bearing fruit. Operational improvements made during 1Q25 were already noticeable, while other investments in fleet reliability, again tied to the JetForward strategy, have driven year-over-year improvements in on-time performance continuously over the previous three quarters. These improvements have driven significant increases in customer satisfaction and cost savings, said Geraghty.

“Thank you to our crewmembers for your commitment to running a safe and reliable operation and to your commitment to the JetForward strategy,” the CEO said. “Your dedication to offering the caring service JetBlue is known for makes a significant impact on the customer experience and is a core reason new and loyal customers keep coming back to fly JetBlue.”

Well-positioned for uncertainty

JetBlue said in a statement of its 1Q25 performance that it remains well-positioned to manage through a range of economic outcomes. Over the past 16 months, the company raised US$3.2 billion in strategic financing in 2024 and managed upcoming capital expenditures by approximately US$3 billion in aircraft deferrals. These savings were providing JetBlue with the funding to execute JetForward. In addition to its current liquidity levels, the company has over $5 billion in unencumbered assets, primarily consisting of aircraft, engines, slots, gates, and routes.

“We’ve already taken several steps to build a more resilient financial foundation, and we continue to evaluate all avenues to improve our financial results,” said Ursula Hurley, JetBlue’s Chief Financial Officer. “We remain confident JetForward will drive enduring structural changes on our path to sustained profitability, and we saw encouraging progress in the first quarter.”

Roman Tiraspolsky / ShutterstockOutlook for 2025

“In the first quarter, we saw booking strength from January deteriorate into February and worsen into March,” said Marty St. George, JetBlue’s president. “We expect softened demand for off-peak travel to continue into the second quarter, where the booking curve is more exposed to macro uncertainty and deteriorating consumer confidence. That said, we are committed to our JetForward plan and are encouraged by the resiliency of premium, international, and loyalty revenues – core components of our long-term strategy.”

Major tie-up with United looms

Since the failure of its Northeast Alliance (NEA) tie-up with American Airlines in 2023 on antitrust grounds, JetBlue has been seeking an alternative partner to bolster its position in the Northeast US, particularly in the Boston and New York corridors. According to a report by Reuters, citing sources close to the matter, the airline is all set to announce a major commercial agreement with another US legacy carrier, United Airlines, in the coming weeks.  

The partnership with United has allegedly been drawn up to work differently from that envisioned under the NEA with American Airlines, the sources said. While the alliance is expected to focus on providing greater connectivity to JetBlue and United customers, also allowing them to earn and burn frequent-flier miles on the other carrier’s flights, unlike the NEA the two carriers will not coordinate on schedules and pricing, the sources added – an issue that has led to legal action recently being launched by American against JetBlue. The latter has not officially confirmed that talks have taken place with United specifically, and the sources told Reuters that the two companies were yet to finalize the details of any potential agreement, adding that matters being discussed remained subject to further changes.

Ceri Breeze / ShutterstockWhile refusing to be drawn on the identity and nature of any possible tie-up with another airline, the airline’s president, Marty St. George, commented on conference call with investors on April 28, 2025, that the company was negotiating with a domestic airline with a larger network and that an announcement was expected in the current quarter. He did not elaborate further. Likewise, refusing to be drawn into the matter, Chicago-based United said it does not comment on industry speculation.

As reported by Skift, in March 2025, United’s CEO, Scott Kirby said that while the company would like to have a greater presence in New York, it was not ready to deal with all the regulatory hurdles. “I would like to have a presence on the other side of the river at JFK Airport,” Kirby had said. “But man, all the headaches, all the brain damage of buying a whole airline to get there. That’s a lot to do.”

RELATED

American Airlines sues JetBlue for over $1M after collapse of Northeast Alliance  

The post JetBlue reveals Q1 results, to announce commercial tie-up with United Airlines   appeared first on AeroTime.

Go to Source