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JetBlue posts smaller-than-expected loss on strong premium demand, cost controls

U.S. carrier JetBlue Airways reported a smaller-than-expected quarterly loss on Tuesday, as steady demand for premium travel and cost-control efforts helped cushion margins.

Premium services with high margins have been resilient. Affluent travelers continue to pay more for comfort while carriers cut capacity on domestic routes in order to reduce costs.

JetBlue, along with its larger competitors United, American and Delta have all highlighted the resilient premium demand which has helped offset the slowdown of the U.S. market due to economic uncertainty caused by President Donald Trump’s policy changes.

JetBlue President Marty St. George said, "We're optimistic that the demand environment will improve throughout the year."

JetBlue's operating costs have been high and the aircraft grounded due to the Pratt & Whitney engine problems on RTX.

The carrier has had to cut back on spending due to rising costs. They have stopped unprofitable routes and delayed aircraft deliveries, as well as halted plans for cabin upgrades.

The New York-based carrier said that it expects the fourth-quarter unit revenues, which is a key indicator of pricing power, will be flat or down by as much as 4 percent from last year, when high demand drove up fares.

JetBlue, which has an all-Airbus aircraft fleet, has lowered its forecast of unit costs in 2025, excluding fuel, to a range of 5%-6%. Earlier, the range was 5%-7.5%.

LSEG data shows that it reported a loss per share of 40 cents, a tad less than Wall Street expectations of 44 cents.

Analysts' expectations were met by the airline's total operating revenue of $2.32 billion for the quarter.

The airline anticipates a profit before interest and tax, or operating income, between $800 million and $900 million by the end of 2027.

(source: Reuters)