Jetblue Airways Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 28 July 2026: press release. Guidance figures: 1 raised, 7 new. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue up 14.5% on unit revenue gains: Operating revenue reached $2.7 billion, up 14.5%, as RASM rose 10.9% on capacity up 3.2%. Passenger revenue per ASM rose 10.6%. Source
• Net loss widened to $247 million: Net loss was $247 million, or $0.66 per diluted share, against $74 million, or $0.21, a year earlier. Source
• Fuel drove most of cost increase: Operating expense per ASM rose 17.0%, and aircraft fuel expense rose 80.7% to $911 million as fuel averaged $4.23 per gallon. Source
• Third-quarter guidance introduced: Third-quarter capacity is estimated up 3.0% to 6.0%, RASM up 12.5% to 16.5%, and CASM ex-fuel up 2.5% to 4.5%. Source
• Second-half margin expected to improve: Management expects second-half operating margin to improve about 3.5 points year over year, citing revenue, capacity and cost execution. Source
• Full-year capex raised to $850 million: Full-year capital expenditures were raised to about $850 million from about $800 million, with third-quarter spending about $300 million. Source
• JetForward cumulative EBIT reached $470 million: JetForward has generated $470 million of cumulative incremental EBIT through June 2026 and remains on track for $850 to $950 million annually by year-end 2027. Source
• 2028 EPS target of at least $1.00: Management introduced a 2028 EPS target of at least $1.00 per share, assuming continued demand strength and an average $3.00 per gallon jet fuel price. Source

“This momentum reinforces our confidence that we're strengthening the foundation for a more profitable JetBlue.”

Joanna Geraghty, chief executive officer

Guidance

What changed from last quarter

• New guidance: Third-quarter 2026 operating estimates were given for ASMs, RASM, CASM ex-fuel and fuel price, alongside full-year estimates. Source
• Guidance raised: Full-year 2026 capital expenditures estimate moved to about $850 million from about $800 million in the prior release. Source
• New: A long-term 2028 EPS target of at least $1.00 per share was introduced. Source
• New: BlueFirst, a new domestic first class product, is expected to begin sales this fall. Source
• New: ClarityPay was introduced to expand flexible payment options for customers. Source
• New: Blue Sky collaboration added reciprocal loyalty benefits for earning and redeeming TrueBlue points. Source
• New: The company secured Pratt & Whitney credits toward future goods and services tied to GTF settlements. Source

Results and growth drivers

• Revenue up 14.5% on unit revenue gains: Operating revenue reached $2.7 billion, up 14.5%, as RASM rose 10.9% on capacity up 3.2%. Passenger revenue per ASM rose 10.6%. Source
• Net loss widened to $247 million: Net loss was $247 million, or $0.66 per diluted share, against $74 million, or $0.21, a year earlier. Source
• Fuel drove most of cost increase: Operating expense per ASM rose 17.0%, and aircraft fuel expense rose 80.7% to $911 million as fuel averaged $4.23 per gallon. Source
• Six-month operating loss widened: For the six months, operating loss was $365 million against $168 million a year earlier. Source

Network and focus cities

• Fort Lauderdale RASM up 11%: Fort Lauderdale RASM grew 11% year over year in the quarter despite nearly 40% capacity growth, as the East Coast leisure network expanded. Source
• Winter schedule adds bank structure: Flight schedules were updated for a more structured bank schedule to improve connectivity, with more than 150 daily departures planned this winter. Source
• Blue Sky adds reciprocal loyalty benefits: The Blue Sky collaboration added reciprocal loyalty benefits, widening where customers can earn and redeem TrueBlue points across the broader network. Source

“we expect second-half operating margin to improve by approximately 3.5 points year-over-year.”

Ursula Hurley, chief financial officer

Products and customers

• Premium and Main Cabin RASM grew: Premium RASM rose about 13% and Main Cabin RASM rose 11%, reflecting demand across the product portfolio. Source
• Loyalty revenue up 13%: Loyalty revenue rose 13%, with new premium card acquisitions up nearly 40% and loyalty cash remuneration up 21%. Source
• ClarityPay adds flexible payment options: JetBlue introduced ClarityPay to give more customers flexible payment options for its product. Source
• EvenMore and seating products continue: EvenMore point redemptions, Preferred Seating and a refreshed premium co-branded credit card were described as continuing to exceed prior expectations. Source
• Reliability lifts A14 and NPS: A14 rose about one point and Net Promoter Score improved 5 points year over year during the quarter, through reliability initiatives. Source
• Mint ranked top for second year: Mint was ranked highest in customer satisfaction among first and business passengers for a second consecutive year in the JD Power 2026 study. Source

Costs and margins

• CASM ex-fuel rose 2.4%: CASM ex-fuel rose 2.4%, 1.6 points better than the mid-point of revised guidance. Operating expense excluding fuel rose 5.7% to $1.91 billion. Source
• Salaries rose with crew headcount: Salaries, wages and benefits rose 2.7% to $875 million as full-time equivalent crewmembers averaged 19,847, up 4.7%. Source
• Other operating expenses rose 13.4%: Other operating expenses rose 13.4% to $379 million, and landing fees and other rents rose 7.1% to $183 million. Source
• Fuel gallons and efficiency rose slightly: Fuel gallons consumed rose 2.5% to 215 million, while fuel efficiency reached 80 ASMs per gallon, up 0.7%. Source

“Our commercial initiatives continued to gain traction in the second quarter, strengthening our visibility into the back half of the year”

Marty St. George, president

Demand and guidance

• Commercial initiatives gained traction: Management said commercial initiatives strengthened visibility into the back half of the year, with demand across nearly all products and geographies. Source
• Third-quarter guidance introduced: Third-quarter capacity is estimated up 3.0% to 6.0%, RASM up 12.5% to 16.5%, and CASM ex-fuel up 2.5% to 4.5%. Source
• Full-year RASM and CASM ranges: Full-year 2026 RASM is estimated up 10.0% to 12.5% and CASM ex-fuel up 2.0% to 4.0%, with capacity up 1.5% to 3.5%. Source
• Second-half margin expected to improve: Management expects second-half operating margin to improve about 3.5 points year over year, citing revenue, capacity and cost execution. Source

Capital, cash and liquidity

• Full-year capex raised to $850 million: Full-year capital expenditures were raised to about $850 million from about $800 million, with third-quarter spending about $300 million. Source
• Second-quarter capex totaled $234 million: Capital expenditures including predelivery deposits were $234 million in the quarter, bringing the six-month total to $375 million against $496 million a year earlier. Source
• Cash declined, debt eased: Cash and equivalents fell to $1.66 billion from $1.95 billion at December 31, 2025, and total debt was $8.48 billion against $8.50 billion. Source
• Pratt & Whitney credits secured: JetBlue secured Pratt & Whitney credits toward future goods and services tied to GTF settlements through calendar year 2025. Source

Strategy and JetForward

• JetForward cumulative EBIT reached $470 million: JetForward has generated $470 million of cumulative incremental EBIT through June 2026 and remains on track for $850 to $950 million annually by year-end 2027. Source
• JetForward benefits build to 2028: Benefits are expected to keep building beyond 2027, reaching about $1.2 billion of annual incremental EBIT in 2028. Source
• 2028 EPS target of at least $1.00: Management introduced a 2028 EPS target of at least $1.00 per share, assuming continued demand strength and an average $3.00 per gallon jet fuel price. Source
• BlueFirst first class sales this fall: BlueFirst, a new domestic first class product, is expected to begin sales this fall. Source

Coming up, as management said on 28 July 2026

• BlueFirst sales begin this fall: Sales of the BlueFirst domestic first class product are expected to begin this fall. Source
• Boston BlueHouse opens this summer: The Boston BlueHouse lounge is on track to open this summer. Source
• Fort Lauderdale winter schedule: Updated schedules are set to deliver more than 150 daily departures this winter in Fort Lauderdale. Source
• A321neo XLR to be sold: One Airbus A321neo XLR is expected to be sold following its delivery and is excluded from capital expenditure guidance. Source

Figures management reported

Risks management discussed

• Operational: Four aircraft were temporarily removed from service because of Pratt & Whitney engine groundings, and those aircraft are included in utilization figures. Source
• External: Fuel price estimates depend on the forward Brent crude curve and the jet crack spread as of July 10, 2026. Source
• Demand: The 2028 EPS target is based on a planned trajectory that assumes continued demand strength and a $3.00 per gallon jet fuel price. Source

Earlier plans management reported on

• Ahead: Recapture was nearly 50% of higher fuel costs, which management described as exceeding expectations; the prior release had guided 30% to 40%. Source
• Met: Capacity rose 3.2%, which management said was within the revised guidance range of 2.0% to 4.0%. Source
• Met: RASM rose 10.9%, which management said was near the better end of the revised guidance range. Source
• Ahead: CASM ex-fuel rose 2.4%, which management described as 1.6 points better than the mid-point of revised guidance. Source
• On track: Management said JetForward remains on track to deliver the previously announced annual incremental EBIT benefit by year-end 2027. Source
• On track: Management said the Boston BlueHouse remains on track to open this summer. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.