JetBlue Airways (0JOT.L) Q4 2024 Earnings Report

JetBlue’s QQ4 2024 results show a modest year-over-year revenue decline alongside a narrowing net loss and improving operating dynamics, framed by a still-elevated debt burden and ongoing fleet-related capital expenditure. Revenue for the quarter was $2.277 billion, down 2.1% year-over-year and 3.7% quarter-over-quarter, with gross profit of $426 million (gross margin ~18.7%). The company posted a small operating profit of $16 million and a net loss of $44 million (EPS -$0.13), reflecting ongoing structural costs and heavy capex despite some margin expansion. EBITDA stood at $232 million, yielding an EBITDAR of about 10.2%, underscoring a low- to mid-single-digit profitability framework in a competitive, capacity-constrained environment. From a liquidity perspective, JetBlue remains relatively well-funded: cash and cash equivalents were $1.921 billion and total cash and short-term investments amounted to $3.610 billion as of 12/31/2024. However, the balance sheet carries meaningful leverage: total debt $9.142 billion and net debt $7.221 billion, with a debt ratio of 0.493 and a debt-to-capitalization measure of 0.776. Free cash flow remained negative at -$434 million for the quarter, driven by capex activity and working capital dynamics, while operating cash flow was negative (-$17 million). The company continues to invest in fleet and network expansion, as evidenced by capital expenditures of $417 million in Q4 and ongoing investing activities, which implies an earnings profile that is heavily dependent on the pace of demand recovery and inflationary/fuel cost dynamics. The QQ4 print suggests early signs of margin stabilization but a meaningful path to sustainable profitability remains contingent on deleveraging and continued revenue/yield improvements. Investors should monitor capacity growth, load factors, fuel costs, labor costs, and fleet financing/timing going into 2025.