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SEC filingOperating loss widened to $100M on 1.8% revenue decline; CASM ex-fuel rose 3.7% as maintenance costs surged.
For the third quarter of 2025, JetBlue reported total operating revenues of $2.322 billion, down 1.8% year-over-year, driven by a 2.9% decline in passenger revenue to $2.135 billion. Passenger revenue weakness was attributed to a 2.0% reduction in revenue passengers and 2.0% lower yield. Other revenue grew 12.0% to $187 million, supported by higher loyalty spend.
Operating expenses totaled $2.422 billion, up 0.8% YoY, resulting in an operating loss of $100 million compared to a loss of $38 million in the prior year. The operating margin worsened to -4.3% from -1.6%. Key cost drivers included a 31.1% increase in maintenance, materials and repairs ($50 million) due to Airbus A320 engine repair timing, and a 4.5% rise in salaries, wages and benefits ($38 million). These were partially offset by a 7.6% decline in aircraft fuel costs ($45 million). CASM ex-fuel (non-GAAP) increased 3.7% to 11.02 cents.
Net loss was $143 million, or $0.39 per share, compared to a net loss of $60 million ($0.17 per share) in 2024. Adjusted net loss (excluding special items and investment gains) was $144 million ($0.40 per share).
The MD&A segments operating revenues into passenger and other revenue. Passenger revenue declined 2.9% as yield fell 2.0% and load factor contracted 1.5 percentage points to 85.1%. Capacity (ASMs) grew modestly by 0.9%. Other revenue growth of 12.0% was driven by loyalty program contributions from the TrueBlue financing, vacation packages, and concessions.
Operating costs were reported on a per-ASM basis. Total CASM was 14.34 cents, essentially flat (-0.1%). Excluding fuel, special items, and non-airline expenses, CASM ex-fuel rose 3.7% to 11.02 cents, reflecting wage pressures and higher maintenance intensity.
JetBlue outlined its JetForward strategic framework focusing on reliable service, east coast leisure network, product enhancements, and financial security. Management noted continued demand recovery with strength in close-in bookings and premium travel. The company expects fewer than 10 aircraft groundings in 2025 from Pratt & Whitney engine inspections, with resolution by end of 2027. The Embraer E190 fleet transition is complete, with remaining owned aircraft sales expected through Q2 2026. Liquidity of $2.9 billion and an undrawn $600 million credit line are expected to meet near-term needs. No quantitative forward guidance was provided.