JetBlue Airways announced a net loss of $60 million, or $0.17 per diluted share, for the third quarter of 2024, underscoring the airline's ongoing challenges as it seeks to stabilize its financial performance amid a competitive landscape. Its shares went down 4.5% before the bell on Tuesday.
Despite the disappointing earnings report, JetBlue's leadership remains optimistic about the future, particularly its JetForward strategy, which aims to enhance operational efficiency and improve the overall customer experience.
Joanna Geraghty, JetBlue's chief executive officer, expressed confidence in the airline's progress, stating, "We met or exceeded all of our financial targets for the third quarter and progressed on the implementation of our JetForward strategy, sustaining the momentum we established in the second quarter."
Geraghty's remarks underscore the dedication of JetBlue's team and the positive trajectory of the airline's operational performance. She thanked the crew members' efforts and the airline's improved operational performance in the third quarter for a double-digit increase in customer satisfaction year over year.
JetBlue's president, Marty St. George, further emphasized the airline's financial goals, noting that the primary objective is to return to operating profitability. He remains encouraged about the backdrop for revenue performance as more JetForward initiatives are expected to yield benefits in 2025, and stressed the importance of growing unit revenue to achieve this goal, indicating that the underlying trends from Q3 have continued into Q4. St. George expressed optimism for positive unit revenue growth moving forward despite challenges posed by Hurricane Milton and the upcoming elections.
The JetForward strategy intends to increase the airline's operating efficiency, rebuild its route network, simplify its fleet, and, eventually, lower operational expenses. The airline has recognized potential challenges that it is now facing and offered prospective remedies as part of the plan.
The New York-based carrier said its efforts show meaningful progress towards achieving its JetForward strategy. The airline's focus on operational reliability has shown major dividends, with on-time performance rising by 12 points in the third quarter. Furthermore, customer satisfaction rates have increased by double digits year after year, demonstrating JetBlue's dedication to offering a dependable travel experience.
JetBlue has restructured approximately 20% of its 2023 network, including closing 15 stations and eliminating over 50 routes, such as Charlotte Douglas International Airport and Minneapolis-St. Paul International Airport. The airline has redeployed aircraft to focus on leisure-oriented routes from Northeast airports, including T.F. Green International Airport in Providence, Rhode Island, and Bradley International Airport in Hartford, Connecticut.
The carrier also plans to open lounges at New York John F. Kennedy International Airport's Terminal 5 in late 2025, followed by a similar project at Boston Logan International Airport. JetBlue has expanded its co-branded portfolio by introducing a premium co-branded credit card and has modified its Blue Basic fare to include carry-on baggage.
To support the JetForward strategy, JetBlue said it has successfully raised approximately $3.2 billion in financing. This funding will help the airline retire existing debt, pre-fund capital expenditures in 2024 and 2025, and ensure a robust runway for the initiatives laid out in JetForward.
