JetBlue Airways (NASDAQ:JBLU) executives used a presentation at Barclays’ 43rd Annual Industrial Select Conference to highlight what they described as improving demand trends, progress under the company’s JetForward plan, and a path toward breakeven operating margins in 2026 and positive free cash flow in 2027.
JetForward progress and operational focus
Chief Financial Officer Ursula Hurley said JetBlue has built “momentum” since launching JetForward about a year and a half ago, emphasizing a focus on items the company can control. Hurley said JetBlue met or exceeded all internal on-time performance metrics in 2025, contributing to a seven-point improvement in net promoter score (NPS) over a two-year period.
Hurley said JetForward delivered $305 million of EBIT in 2025 and is expected to deliver “upwards of $310 million of value” in 2026. Looking ahead, she reiterated a goal of achieving “a break-even or better operating margin” in 2026, which management views as a key step toward positive free cash flow in 2027.
Demand described as “strong”
President Marty St. George said demand has strengthened, using a term he said the airline industry has not heard in about a year: “strong.” He said JetBlue beat its fourth-quarter RASM guide by “a pretty good number” and that momentum continued into the first quarter.
Asked about the impact from recent East Coast storms, management said the effect was “de minimis” and not expected to affect the company’s annual guidance.
In discussing 2025 performance, Hurley said the company exceeded its JetForward EBIT goal and suggested that absent a macroeconomic “step back,” JetBlue would have reached its breakeven target last year. St. George added that 2025 results came amid a “pretty significant reduction” in ASM growth year over year, while JetForward initiatives included passenger-count-related efforts such as bag fee increases and premium seating.
Fort Lauderdale expansion and network performance
St. George pointed to Fort Lauderdale as JetBlue’s top network growth priority, describing the market as exceeding expectations and benefiting from improved access to facilities—particularly international arrival gates—that support JetBlue’s international growth plans there. He said JetBlue added capacity beginning in mid-2025 and continued adding later in 2025, with plans to expand further “as facilities become available.”
He said performance strength has been broad-based across the network rather than isolated to a single region, including transcontinental markets. When asked about premium versus main cabin trends, St. George said the relationship between the cabins has been “more or less steady,” while also noting improved results “in the back of the airplane” compared with the prior couple of years. He linked this in part to operational improvements and said JetBlue is at the top of an industry-wide NPS measure it tracks through Bain.
Product initiatives and Blue Sky partnership with United
Hurley said JetBlue’s operational reliability improvements are the initiative she is “most proud” of, citing investments in operational tools, frontline support, and customer self-service capabilities for disruptions.
Looking ahead, she highlighted two initiatives for 2026:
- Domestic first class: Hurley said JetBlue expects to roll out a domestic first-class product “most likely in the third quarter.”
- Blue Sky partnership ramp-up: Hurley said JetBlue and United recently began selling each other’s flights on their websites, and later in the year United customers will be able to use JetBlue’s Paisly platform to purchase ancillary-type products.
St. George described the Blue Sky relationship as important to JetBlue’s long-term scale, particularly in strengthening the TrueBlue loyalty program by expanding the ability to earn and redeem points across more destinations. He stressed that the agreement is an “industry-standard interline” arrangement and not like the company’s prior relationship with American, noting JetBlue and United “remain competitors.”
Engines, capacity, CapEx, and balance sheet priorities
Hurley said the carrier expects fewer aircraft grounded due to Pratt & Whitney GTF engine issues in 2026, improving to a “mid-single-digit” average number of aircraft on the ground, down from about nine last year. She said the improving aircraft situation allows JetBlue to grow again and can support cost efficiency.
On staffing, Hurley said JetBlue had been staffed for a higher level of operations in recent years and has taken steps to rightsize through a pilot early retirement program and voluntary programs across workgroups. She said the airline expects to hire in-flight crew members for the first time in years, while pilots are “still not there” yet.
Regarding compensation for the engine disruptions, Hurley said JetBlue is still negotiating with Pratt & Whitney. She said JetBlue’s 2026 guidance assumes a “small benefit” from compensation, but the overall annual impact is expected to be minimal due to how compensation can be structured and the related accounting treatment.
Hurley said JetBlue guided to about $900 million of net capital expenditures this year and described a plan to keep annual CapEx below $1 billion through the end of the decade, with aircraft deliveries stepping down to “a handful per year” beginning in 2027. She said that profile is intended to support the goal of positive free cash flow in 2027, while still allowing “low to mid-single-digit growth” through the end of the decade.
On the balance sheet, Hurley said the company believes it has reached “peak debt levels,” expects to pay down about $800 million of debt this year, and plans to raise $500 million. She outlined priorities as achieving breakeven or better operating margin in 2026, generating positive free cash flow in 2027, and then focusing on debt reduction and leverage improvement.
Hurley said JetBlue has more than $6.5 billion in unencumbered assets, including about $2 billion in aircraft and engines, and also cited potential flexibility tied to the loyalty program as well as slots, gates, routes, and the brand.
About JetBlue Airways (NASDAQ:JBLU)
JetBlue Airways Corporation is a low-cost scheduled passenger airline headquartered in Long Island City, New York. Since commencing service in 2000, the carrier has built a reputation for combining competitive fares with enhanced onboard amenities, including free in-flight entertainment, complimentary snacks and beverages, and onboard Wi-Fi. JetBlue operates a single fleet type of Airbus A320 family and Embraer 190 aircraft, which supports its focus on efficiency and operational consistency.
The airline’s core offerings include economy-class travel and a premium business-class product known as Mint, which features lie-flat seats, curated culinary options and elevated service on select transcontinental and international routes.
