JetBlue Airways lost $60 million in the third quarter of 2024 but insists its turnaround plan is yielding results, citing improving cost and revenue trends.
The New York-based airline disclosed its third-quarter loss on 29 October, while also revealing product tweaks aimed at squeezing more revenue from extra-legroom seats.
The $60 million loss improves on JetBlue’s loss of $135 million in the third quarter of 2023, but marks a negative turn after the airline had posted a $25 million profit in the second quarter of this year.
“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,” says JetBlue chief executive Joanna Geraghty.
JetBlue in July revealed its JetForward turnaround plan to stem financial losses by shrinking its operation, improving reliability and introducing new seating options. JetBlue is among several low-cost US airlines squeezed in recent years by factors including excessive supply of seats.
“Our… capacity actions have helped to better match supply with demand during off-peak flying. Demand remained healthy in peak periods and close-in, and was further supported by improving competitive capacity, particularly in the Latin region, and the ramp of our revenue initiatives,” says JetBlue president Marty St George.
As part of its turnaround plan, JetBlue deferred to 2030 and beyond deliveries from Airbus of 44 new Airbus A321neos, meaning it does not anticipate receiving any of that type from Airbus between 2026 and 2029.
This year, the company stopped flying to 15 airports and eliminated 50 routes, while “redeploying aircraft to [support] our strengths in leisure-focused routes originating from Northeast airports”, including Hartford and Providence, the airline says.
As a result, JetBlue carried 10.6 million passengers in the third quarter, down 2.9% year on year, while its third-quarter available seat miles slipped 3.6% in one year.
In the third quarter, the airline generated $2.4 billion in operating revenue, up half a percentage point year on year, and logged $2.4 billion in operating expenses, down 4.2% year on year.
JetBlue has lost $751 million in the first three quarters of this year, compared to its $207 million loss in same nine months of 2023.
Also on 29 October, the carrier said it plans in 2025 to add unnamed “benefits and amenities” to “Even More Space”, its extra-legroom economy seat product. Additionally, in mid-November JetBlue will begin selling those seats “directly on the flight search results page” rather than only presenting the seats as paid upgrades on the website’s seat-selection page.
“The new approach is designed to boost customer consideration for JetBlue and strengthen the airline’s competitive position in the premium leisure segment,” JetBlue says.
