U.S. demand for air travel rebounds, causing JetBlue to announce a less than projected loss in returns
JetBlue Airways, the popular U.S. carrier, recently reported its Q2 2025 financial results, showcasing a smaller loss than analysts expected. The company posted an adjusted loss of 16 cents per share, compared to the forecasted loss of 33 cents per share. Revenue for the quarter also beat expectations, totalling $2.4 billion, compared to the predicted $2.3 billion.
However, the company's revenue for the quarter was lower than analysts' expectations, as larger peers Delta and United have signalled that bookings are starting to stabilise, though at lower-than-expected levels.
The decline in revenue per available seat mile (RASM), an industry metric that indicates a decrease in pricing power, is a reflection of this trend. JetBlue expects third-quarter RASM to decline between two and six percent.
Despite the revenue decline, the momentum continued into July, as per JetBlue's president, Marty St. George. He attributed this to significant strength for bookings within 14-days of travel and for peak travel periods.
JetBlue's financial performance was driven by strong demand around peak holiday periods and successful premium service sales. The reporting for this article was done by Aishwarya Jain in Bengaluru.
Looking ahead to Q3 2025, JetBlue expects bookings and demand to continue improving, supporting optimism for revenue. However, cost pressures remain reflected in rising unit costs. The carrier's operating revenue for the quarter was US$2.18 billion.
In April, JetBlue joined several major airlines in pulling its 2025 financial forecast due to uncertainty tied to the Trump administration’s sweeping tariff policies and federal spending cuts. The improvement in demand for air travel, as reported by JetBlue, contrasts with the uncertainty and financial forecast pullbacks earlier in the year.
In terms of cost, JetBlue reinstated its 2025 unit cost forecast and expects it to rise between five and seven percent. The company's operating expense per available seat mile (CASM) increased by 0.6% year-over-year to 14.13 cents in Q2 2025, and excluding fuel, special items, and non-airline expenses, CASM ex-fuel rose 6.0% to 10.86 cents.
The editing for this article was done by Shailesh Kuber. The data for the analysts' expectations was compiled by LSEG. The loss was due to cost cutting measures and recovering demand for travel in the U.S.
This optimistic outlook for Q3 2025, coupled with the cost pressures, paints a mixed picture for JetBlue Airways as it navigates the ongoing challenges in the aviation industry.
JetBlue Airways' revenue decline, despite showing improvement in July, remains a concern as larger peers' bookings start to stabilize at lower-than-expected levels. The company's optimism for revenue in Q3 2025 is balanced by rising cost pressures, reflecting a challenging period in the airline's lifetime as it continues to navigate the aviation industry.
The company's focus on strong demand around peak holiday periods and successful premium service sales indicates a lifestyle-oriented travel strategy, with the airline's financial performance and cost pressures directly impacting its overall travel offerings.
