JetBlue Airways Corporation (NASDAQ: JBLU) was incorporated in Delaware in August 1998, commenced service on February 11, 2000 and ranked as the sixth largest airline in the U.S. in 2021. JetBlue’s differentiated product and culture combined with its competitive cost structure enables JetBlue to compete effectively in high-value geographies and serve customers to over 100 destinations. Its more than 22,000 dedicated crewmembers provide award-winning service throughout the entire customer experience, from booking an itinerary to arrival at the final destination.
Big Picture
JetBlue is firmly in turnaround mode, and 2025 shows real progress:
- $305M of incremental EBIT delivered in 2025 from its JetForward plan
- Management reaffirmed a path to breakeven or better operating profit in 2026
- Focus is shifting from stabilization, earnings recovery
Revenue & Demand
- 4Q25 RASM grew year over year, beating guidance by +2.2 points
- Demand stayed healthy despite:
- Hurricanes
- Government shutdown
- Airbus engine issues
- Premium and loyalty revenue outperformed:
- Premium RASM ran 13 points higher than core
- Co-brand card spend hit a record in December
JetBlue now expects positive RASM growth for all of 2026
JetForward Strategy (Core of the Story)
JetForward is working and scaling:
2025
- $305M incremental EBIT realized
2026
- $310M additional EBIT expected
By 2027
- $850–$950M total incremental EBIT target
Key drivers:
- Network optimization (especially Fort Lauderdale)
- Premium upsell (EvenMore®, preferred seating, domestic first class)
- Loyalty expansion
- Cost discipline and operational reliability
Blue Sky (JetBlue + United)
This is a material catalyst for 2026:
- Loyalty points now earn/redeem across both airlines
- United will sell JetBlue flights
- United’s non-flight ancillaries will run through JetBlue’s Paisly platform
- Reciprocal elite benefits begin rolling out in March 2026
Management clearly expects meaningful revenue uplift from this partnership.
Costs & Balance Sheet
- 2025 CASM ex-fuel: +6.2% (in line with guidance)
- 2026 CASM ex-fuel: expected to slow to +1–3%
- Gross debt peaked in 2025
- Liquidity remains solid:
- $2.5B cash
- $6.5B unencumbered assets
- CapEx reduced by ~$3B since 2023
2026 Guidance Highlights
- ASM growth: 2.5%–4.5%
- RASM growth: 2.0%–5.0%
- Operating margin: breakeven or better
- Capex: $900M
- Free cash flow: turning positive by end of 2027
Bottom Line
JetBlue is:
- Past the worst of the restructuring
- Showing real revenue traction
- Using partnerships, loyalty, and premium products to lift margins