JetBlue Reports $795 Million Net Loss for Fiscal Year 2024 Amid Merger Write-Off

JetBlue Airways Corporation reported a net loss of $795 million for the fiscal year ending December 31, 2024, a significant increase from the $310 million loss recorded in 2023. This deterioration in financial performance was primarily attributed to a $532 million write-off related to costs associated with the terminated merger agreement with Spirit Airlines. Operating revenue for the year was $9.3 billion, down 3.5% from the previous year, largely due to a 3.5% reduction in capacity. Operating expenses increased by 1.2% to $10 billion, with notable increases in salaries, wages, and benefits, driven by wage rate increases following new union contracts.

In terms of operational metrics, JetBlue's system-wide on-time performance improved to 74.1% in 2024, up from 67.4% in 2023, while the completion factor rose to 98.6%. The airline's capacity, measured in available seat miles (ASMs), decreased by 3.5% year-over-year, reflecting strategic adjustments to focus on high-performing leisure and visiting-friends-and-relatives routes. JetBlue also announced the opening of a flight attendant crew base in San Juan, Puerto Rico, and plans for a pilot crew base in early 2025, indicating a commitment to enhancing operational efficiency and service reliability.

Strategically, JetBlue launched its JetForward initiative in July 2024, aimed at improving service reliability, expanding its east coast leisure network, and enhancing product offerings. The airline has also made significant changes to its fare structure, including updates to its Blue Basic fare to include a free carry-on bag, and plans to introduce a domestic first-class cabin across its non-Mint fleet by 2026. Additionally, JetBlue is set to open airport lounges at JFK and Boston Logan airports, further enhancing the customer experience.

As of December 31, 2024, JetBlue's liquidity position was strong, with $3.9 billion in cash and cash equivalents, short-term investments, and long-term marketable securities. The company raised approximately $2.8 billion through the issuance of senior secured notes and a new term loan facility, bolstering its financial flexibility. However, the airline's total debt and finance lease obligations increased to approximately $12 billion, raising concerns about its ability to service these obligations amid ongoing economic pressures and competitive challenges in the airline industry.

Looking ahead, JetBlue anticipates continued volatility in its operating results due to factors such as fluctuating fuel prices, economic conditions, and competitive dynamics. The company remains focused on executing its JetForward strategy to drive profitability and enhance customer service, while also navigating the complexities of the airline industry's regulatory environment and evolving market conditions.