JETBLUE AIRWAYS CORP
For the period ended Jun 30, 2025. Filed Jul 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 29, 2025
JBLU$3.67+5.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-29.
0001158463-25-000066
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-29.
0001158463-25-000089
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 127 previous paragraphs and 176 current paragraphs.
68 unchanged; 44 reworded; 54 added; 13 removed; 2 previous and 10 current paragraphs rearranged.
Tables are not compared: 9 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (54)
Current report
We expect our operating results to fluctuate significantly from quarter-to-quarter in the future due to factors such as economic conditions, weather events, cost of aircraft fuel, and various other factors, many of which are outside of our control. Consequently, we believe quarter-over-quarter comparisons of our operating results may not necessarily be meaningful; you should not rely on our results for any one quarter as an indication of our future performance. Except for uncertainty related to the cost of aircraft fuel, we expect our expenses to continue to increase from wage rate cost pressures, as we acquire additional aircraft, and as our fleet ages.
Current report
Second Quarter 2025 Results
Current report
In thesecond quarter of 2025, we hadoperating income of $6 million, compared to operating income of $57 million in the 2024 period. The decline in operating income is primarily due to softening demand resulting from lower consumer confidence because of an uncertain macro economic environment. The decline in revenue was partially mitigated by lower operating expenses, primarily aircraft fuel costs, compared to the prior year.
Current report
In the second quarter, we continued to make adjustments to our business in response to the evolving macro economic environment and further realigned our network to our strengths. We are ending our service to Miami this fall and are shifting to seasonal service in Seattle this winter.
Current report
We announced new seasonal Mint® service from both Newark and Orlando to Las Vegas starting this winter. This announcement marks the first time JetBlue will bring Mint® service to Orlando. We also launched new service from Boston to two transatlantic locations, Madrid, Spain and Edinburgh, Scotland, as well as began new service to San Pedro Sula, Honduras; Wilmington, North Carolina; Norfolk, Virginia; and Traverse City, Michigan.
Current report
In May 2025, we announced a collaboration with United Airlines, referred to as Blue Sky. This collaboration, once implemented, is structured to give customers of both airlines even more options to find flights that fit their plans as well as new opportunities to earn and use MileagePlus® miles and TrueBlue® points across both airlines. Once in place, Blue Sky is anticipated to provide members of each airline's loyalty program with similar benefits over time. It will also provide reciprocal revenue-based miles and points accrual and redemptions when members use and earn miles or points on the partner airline. In connection with the Blue Sky collaboration, DOT has concluded its regulatory review. JetBlue and United may now begin implementing the collaboration.
Current report
In June 2025, we announced the rebranding of JetBlue Travel Products to Paisly, LLC ("Paisly"). The rebranding marks a strategic milestone in JetBlue's broader JetForward strategy, as Paisly evolves from an internal travel platform into a full-service, tech-enabled managed travel services company. With a mission to deliver personalized, human-first experiences, Paisly is positioned to serve not only JetBlue customers but also those of other airlines, starting with a new collaboration with United Airlines, and is expected to support a growing range of partners across the broader travel landscape. The collaboration will contribute to our high-margin, high-growth Paisly business, which is JetBlue's independently-led white label platform, for the distribution of hotels, rental cars, cruises, travel insurance and packages under United's brand.
Current report
During the quarter, we also announced the expansion of our partnership with Japan Airlines, to include TrueBlue® point redemptions. This milestone marks the first time JetBlue's TrueBlue® members can redeem points for travel with an airline partner in East Asia.
Current report
We were also awarded the top airline for first and business class customer satisfaction in the J.D. Power 2025 North America Airlines Satisfaction Study. Additionally, our core product rose to second place for both economy and premium economy categories.
Current report
In May 2025, as part of efforts to return focus to our core business, SKY Leasing ("SKY"), a leading aviation investment manager, acquired certain assets of JetBlue Technology Ventures LLC ("JBV"), JetBlue's venture capital subsidiary. JetBlue continues to serve as a strategic partner to SKY and its portfolio companies. JetBlue retained ownership of its fund portfolio, disclosed in Note 8 to our condensed consolidated financial statements included in Part I, Item 1 of this Report, and SKY has assumed management of the investments, subject to an agreed upon management fee. Certain other conditions exist in the agreement, but are not expected to have a material impact on the companies' operations or financial condition.
Current report
We expect to average fewer than 10 aircraft groundings in 2025 and believe this year represents the peak. We expect the number to reduce as we progress into 2026 and fully resolve by the end of 2027. We are currently working with Pratt & Whitney on a commercial resolution and any potential remediation steps remains uncertain.
Current report
Embraer E190 Fleet Transition
Current report
In the second quarter of 2025, as part of the Company's fleet transition plan, the Company entered into definitive agreements to sell our remaining owned Embraer E190 fleet, which include 25 airframes and 59 engines. We received $9 million in cash proceeds for the deposits for the aircraft sales. The aircraft are expected to be sold beginning in the third quarter of 2025 through the second quarter of 2026. In July 2025, prior to the filing date, we sold four airframes and six engines.
Current report
We reported a net loss of$74 million, operating income of$6 million and an operating margin of 0.3% for the three months ended June 30, 2025. This compares to a net income of $25 million, an operating income of $57 million and an operating margin of 2.3% for the three months ended June 30, 2024. Our loss per share was$0.21 for the second quarter of 2025 compared to a earnings per share of $0.07 for the same period in 2024. Net loss increased $99 million year-over-year primarily due to lower revenue driven by softening demand and higher interest expense due to the financing of the TrueBlue® loyalty program in August 2024.
Current report
(1)Refer to "Regulation G Reconciliation of Non-GAAP Financial Measures" at the end of this section for more information on this non-GAAP measure. 26
Current report
(1)Not meaningful or greater than 100% change.
Current report
Salaries, Wages and Benefits
Current report
Salaries, wages and benefits increased by $68 million, or 8.5%, for the three months ended June 30, 2025 compared to the same period in 2024, driven by a pilot union contract wage rate increase of 9% effective August 2024.
Current report
For the three months ended June 30, 2025, special items included$24 million relating to voluntary opt-out costs, compared to$1 million for the same period in 2024.
Current report
Other income decreased by$9 million, or 53.6%, for thethree months ended June 30, 2025 compared to the same period in 2024. This decrease was primarily due to lower income recorded related to our share of equity method investees' financial results compared to the prior year.
Current report
RESULTS OF OPERATIONS
Current report
Overview
Current report
Operating Revenues
Current report
(1)Refer to "Regulation G Reconciliation of Non-GAAP Financial Measures" at the end of this section for more information on this non-GAAP measure. 30
Current report
Operating Expenses
Current report
Aircraft fuel decreased by $236 million, or 18.9%, for the six months ended June 30, 2025 compared to the same period in 2024. The average fuel price for the six months ended June 30, 2025 decreased by 14.9% to $2.48 per gallon and fuel consumption decreased by 4.7%, or 21 million gallons.
Current report
Salaries, Wages and Benefits
Current report
Salaries, wages and benefits increased by $107 million, or 6.7%, for the six months ended June 30, 2025 compared to the same period in 2024, driven by a pilot union contract wage rate increase of 9% effective August 2024.
Current report
Aircraft Rent
Current report
Sales and Marketing
Current report
Sales and marketing decreased by$17 million, or 10.4%, in thesix months ended June 30, 2025 compared to the same period in 2024, primarily due to lower credit card fees as a result of the reduction in passenger revenue.
Current report
Maintenance, Materials and Repairs
Current report
Maintenance, materials and repairs increased $106 million, or 37.6%, for the six months ended June 30, 2025 compared to the same period in 2024 primarily due to the timing of Airbus A320 engine repairs. This increase is partially offset by an increase in engine shop visit credits received.
Current report
Special Items
Current report
For the six months ended June 30, 2025, special items included$24 million relating to voluntary opt-out costs.
Current report
•$16 million relating to voluntary opt-out costs; and
Current report
Other Operating Expenses
Current report
Other operating expenses decreased by $50 million, or 6.9%, in thesix months ended June 30, 2025 compared to the same period in 2024, due to net gains of $49 million principally from five engine sale-leaseback transactions, the sale of seven V2500 engines, and the contracted sale of two Airbus A321neo XLR aircraft.
Current report
Other Income (Expense)
Current report
Interest Expense
Showing the first 40 of 54 passages. Open the source sections for the rest.
Removed paragraphs (13)
Previous report
First Quarter 2025 Results
Previous report
(1)Refer to "Regulation G Reconciliation of Non-GAAP Financial Measures" at the end of this section for more information on this non-GAAP measure. 22
Previous report
We launched further enhancements to our EvenMore® product by adding additional amenities such as dedicated overhead bin space, free alcohol, and a premium snack.
Previous report
In January 2025, we launched a premium co-branded credit card, which quickly met sign-up targets.
Previous report
Sustainability
Previous report
Along with our fuel partners, we marked the first-ever regular supply of sustainable aviation fuel for commercial air travel in the region at JFK.
Previous report
Given that we expect to have a certain number of aircraft groundings through 2025 and beyond, we plan to continue to assess the resulting impact on our future capacity plans. We are currently working with Pratt & Whitney on a resolution and any potential remediation steps remains uncertain.
Previous report
Aircraft Fuel
Previous report
There were no special items for the three months ended March 31, 2025.
Previous report
(2) Embraer E190 excludes 19 permanently parked owned aircraft and five parked aircraft awaiting lease return.
Previous report
Flight Equipment Purchase Obligations
Previous report
For the three months ended March 31, 2025, there were no special items.
Previous report
For the three months ended March 31, 2025, there were no special items.
Reworded paragraphs (44)
Previous wording
Our first quarter 2025 highlights include the following:
Current wording
Our second quarter 2025 highlights include the following:
Previous wording
•First quarter 2025 system available seat miles ("ASMs" or "capacity")decreased by 4.3% year-over-year.
Current wording
•Second quarter 2025 system available seat miles ("ASMs" or "capacity")decreased by 1.5% year-over-year.
Previous wording
•Operating revenue for the first quarter of 2025 was $2.1 billion, a decrease of 3.1% year-over-year.
Current wording
•Operating revenue for the second quarter of 2025 was $2.4 billion, a 3.0% decrease year-over-year.
Previous wording
•Operating expense for thefirst quarterof 2025 was$2.3 billion, a 21.0% decrease year-over-year.
Current wording
•Operating expense for thesecond quarterof 2025 was $2.4 billion, a 0.9% decrease year-over-year.
Previous wording
•Operating expense, excluding special items, for the first quarter of 2025 was $2.3 billion, a 2.2%(1)decrease year-over-year. There were no special items in the first quarter of 2025.
Current wording
•Operating expense, excluding special items, for the second quarter of 2025 was $2.3 billion, a 1.9%(1)decrease year-over-year.
Previous wording
•Operating expense per available seat mile ("CASM") for thefirst quarter of 2025 decreased by 17.4% year-over-year to 14.83 cents compared to thefirst quarter of 2024.
Current wording
•Operating expense per available seat mile ("CASM") for thesecond quarter of 2025 increased by 0.6% year-over-year to 14.13 cents compared to thesecond quarter of 2024.
Previous wording
•Excluding fuel, special items, and operating expenses related to our non-airline businesses, our cost per available seat mile ("CASM ex-fuel")(1) increased by 8.3% to 11.45 cents in thefirst quarter of 2025 compared to the first quarter of 2024.
Current wording
•Excluding fuel, special items, and operating expenses related to our non-airline businesses, our cost per available seat mile ("CASM ex-fuel")(1) increased by 6.0% to 10.86 cents in thesecond quarter of 2025 compared to the second quarter of 2024.
Previous wording
On-time performance, as defined by the DOT, is arrival within 14 minutes of scheduled arrival time. In thethree months ended March 31, 2025, our system-wide on-time performance was 75.1% compared to 70.9% for the same period in 2024. Our completion factor was 98.6% for thethree months ended March 31, 2025 compared to 98.7% for the same period in 2024.
Current wording
On-time performance, as defined by the DOT, is arrival within 14 minutes of scheduled arrival time. In thethree months ended June 30, 2025, our system-wide on-time performance was 77.3% compared to 74.8% for the same period in 2024. Our completion factor was 99.6% for thethree months ended June 30, 2025 compared to 98.8% for the same period in 2024.
Previous wording
We remain committed to focusing our network in 2025 on high-performing leisure, visiting-friends-and-relatives and transcontinental routes in core geographies like New York, New England, Florida, and Puerto Rico. In 2024, we made a number of network changes, which are expected to ramp up throughout 2025. We have seen initial benefits from these network changes, primarily new BlueCities in the northeast, further reinforcing our decision to pursue growth in core markets loyal to the JetBlue brand.
Current wording
We are focused on high-performing leisure, visiting-friends-and-relatives and transcontinental routes in core geographies like New York, New England, Florida, and Puerto Rico. In 2024, we made a number of network changes, which are ramping up throughout 2025.
Previous wording
To secure our financial future and navigate near-term demand volatility, we are focused on maintaining a strong liquidity position and evaluating opportunities to reduce our controllable costs. We continue to make progress on the JetForward cost program, by executing technology driven efficiencies, enhancing our planning and sourcing strategies, and unlocking savings from cross-functional fuel burn optimization efforts.
Current wording
To secure our financial future and navigate near-term demand volatility, we are focused on maintaining a strong liquidity position and evaluating opportunities to reduce our controllable costs. We continue to make progress on the JetForward cost program by executing technology driven initiatives focused on AI and data science adoption to increase customer self service, disruption management, and fuel consumption reductions.
Previous wording
At March 31, 2025, we had$3.8 billion in liquidity, which included unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities. In addition, we had a $600 million Citibank line of credit.
Current wording
At June 30, 2025, we had$3.4 billion in liquidity, which included unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities. In addition, we had a $600 million Citibank undrawn line of credit.
Previous wording
In July 2023, Pratt & Whitney, a division of RTX Corporation, announced the requirement, mandated by the FAA, for removal of certain engines for inspection due to a rare condition involving powdered metal used in the production of certain engine parts on the PW1100G and PW1500G engine types. These engines power our Airbus A321neo and Airbus A220 fleets. The powdered metal affects engines manufactured between October 2015 and September 2021. Those engines are now required to be inspected after they have reached a reduced number of cycles dependent on the fleet type. As a result of these required inspections and other engine reliability deficiencies, as of March 31, 2025, we had 11 aircraft grounded due to lack of engine availability. The Company currently expects each removed engine to take approximately 300 days to complete a shop visit and return to a serviceable condition.
Current wording
In July 2023, Pratt & Whitney, a division of RTX Corporation, announced the requirement, mandated by the FAA, for removal of certain engines for inspection due to a rare condition involving powdered metal used in the production of certain engine parts on the PW1100G and PW1500G engine types. These engines power our Airbus A321neo and Airbus A220 fleets. The powdered metal affects engines manufactured between October 2015 and September 2021. Those engines are now required to be inspected after they have reached a reduced number of cycles dependent on the fleet type. As a result of these required inspections and other engine reliability deficiencies, as of June 30, 2025, we had eight aircraft grounded due to lack of engine availability. The Company currently expects each removed engine to take approximately 300 days to complete a shop visit and return to a serviceable condition.
Previous wording
Our reported results for the three months ended March 31, 2025 and 2024 included the effects of special items and certain gains and losses on investments. Adjusting for these items, our adjusted net loss(1) was $209 million, adjusted operating loss(1) was $174 million, adjusted operating margin(1) was (8.2)%, and adjusted loss per share(1) was $0.59 for the three months ended March 31, 2025. This compares to an adjusted net loss(1)of $145 million, adjusted operating loss(1) of $157 million, adjusted operating margin(1)of (7.1)%, and adjusted loss per share(1)of $0.43 for the three months ended March 31, 2024.
Current wording
Our reported results for the three months ended June 30, 2025 and 2024 included the effects of special items and certain gains and losses on investments. Adjusting for these items, our adjusted net loss(1) was $58 million, adjusted operating income(1) was $30 million, adjusted operating margin(1) was 1.3%, and adjusted loss per share(1) was $0.16 for the three months ended June 30, 2025. This compares to an adjusted net income(1)of $26 million, adjusted operating income(1) of $58 million, adjusted operating margin(1)of 2.4%, and adjusted earnings per share(1)of $0.08 for the three months ended June 30, 2024.
Previous wording
Passenger revenue is our primary source of revenue, which includes seat revenue and baggage fees, as well as revenue from our ancillary product offerings such as Even More®. Passenger revenue decreased 4.2% for thethree months ended March 31, 2025 compared to the same period in 2024. This was mainly driven by a 4.3% reduction in capacity.
Current wording
Passenger revenue is our primary source of revenue, which includes seat revenue and baggage fees, as well as revenue from our ancillary product offerings such as Even More®. Passenger revenue decreased 3.8% for thethree months ended June 30, 2025 compared to the same period in 2024. This was mainly drivenby a 1.5% reduction in capacity and a 3.9% reduction in revenue passengers.
Previous wording
Other revenue increased$17 million, or 10.9%, primarily due to higher customer spend related to loyalty revenue from the non-transportation elements of the sale of TrueBlue® points. Other revenue also includes revenue from the sale of vacation packages, airport concessions and advertising revenue.
Current wording
Other revenue increased$14 million, or 8.1%, primarily due to higher customer spend related to loyalty revenue from the non-transportation elements of the sale of TrueBlue® points. Other revenue also includes revenue from the sale of vacation packages, airport concessions and advertising revenue.
Previous wording
Aircraft fuel decreased by$114 million, or 18.3%, for the three months ended March 31, 2025 compared to the same period in 2024. The average fuel price decreased by 13.5% to $2.57 per gallon and fuel consumption decreased by 5.6%, or 12 million gallons.
Current wording
Aircraft fuel decreased by$122 million, or 19.4%, for the three months ended June 30, 2025 compared to the same period in 2024. The average fuel price decreased by 16.2% to $2.40 per gallon and fuel consumption decreased by 3.8%, or 8 million gallons.
Previous wording
Aircraft rent decreased by $8 million, or 29.2%, in the three months ended March 31, 2025 compared to the same period in 2024, as a result of fewer leases for Airbus A320 aircraft and Embraer E190 aircraft. The Company purchased certain Airbus A320 aircraft off lease and certain Embraer E190 aircraft leases reached their lease expiration and were returned to the lessor as part of the Company's fleet transition plan.
Current wording
Aircraft rent decreased by $5 million, or 21.2%, in the three months ended June 30, 2025 compared to the same period in 2024, as a result of fewer leases for Airbus A320 aircraft and Embraer E190 aircraft. The Company purchased certain Airbus A320 aircraft off lease and certain Embraer E190 aircraft leases reached their lease expiration and were returned to the lessor as part of the Company's fleet transition plan.
Previous wording
Sales and marketing decreased by$7 million, or 8.8%, in thethree months ended March 31, 2025 compared to the same period in 2024, primarily due to lower credit card fees as a result of reduction in capacity.
Current wording
Sales and marketing decreased by$11 million, or 11.8%, in thethree months ended June 30, 2025 compared to the same period in 2024, primarily due to lower credit card fees as a result of the reduction in passenger revenue.
Previous wording
Maintenance, materials and repairs increased by$59 million, or 43.9%, in thethree months ended March 31, 2025 compared to the same period in 2024, primarily due to the timing of Airbus A320 engine repairs and Embraer E190 engine lease return repairs.
Current wording
Maintenance, materials and repairs increased by$48 million, or 31.9%, in thethree months ended June 30, 2025 compared to the same period in 2024, primarily due to the timing of Airbus A320 engine repairs. This increase is partially offset by an increase in engine shop visit credits received.
Previous wording
Other operating expenses decreased by$26 million, or 7.2%, in thethree months ended March 31, 2025 compared to the same period in 2024, primarily due to gains from two engine sale-leaseback transactions.
Current wording
Other operating expenses decreased by$24 million, or 6.6%, in thethree months ended June 30, 2025 compared to the same period in 2024, due to net gains of $27 million principally from three engine sale-leaseback transactions, the sale of seven V2500 engines, and the contracted sale of two Airbus A321neo XLR aircraft.
Previous wording
Interest expense increased by $95 million, for thethree months ended March 31, 2025 compared to the same period in 2024. This increase wasprimarily due to the financing of our TrueBlue® program as well as incremental failed aircraft sale-leaseback transactions and new equipment notes. These increases were partially offset by commitment fees incurred in 2024 related to the $3.5 billion Senior Secured Bridge Facility, but canceled in March 2024 in connection with the termination of the merger with Spirit.
Current wording
Interest expense increased by $84 million, for thethree months ended June 30, 2025 compared to the same period in 2024. This increase wasprimarily due to the financing of our TrueBlue® program, the issuance of new equipment notes, and incremental failed aircraft sale-leaseback transactions.
Previous wording
Interest income increased by $19 million, or 94.1%, for thethree months ended March 31, 2025 compared to the same period in 2024. This increase wasprimarily driven by an increase in short term investments due to the proceeds received from the TrueBlue® Financings.
Current wording
Interest income increased by $15 million, or 86.8%, for thethree months ended June 30, 2025 compared to the same period in 2024. This increase wasprimarily driven by an increase in short term investments due to the proceeds received from the TrueBlue® Financings.
Previous wording
We reported a net loss of$208 million, operating loss of$174 million and an operating margin of(8.2)% for the three months ended March 31, 2025. This compares to a net loss of $716 million, an operating loss of $719 million and an operating margin of (32.6)% for the three months ended March 31, 2024. Our loss per share was$0.59 for the first quarter of 2025 compared to a loss per share of $2.11 for the same period in 2024. Net loss decreased $508 million year-over-year primarily due to the March 2024 write off of Spirit-related costs for $532 million as a result of the termination of the Merger agreement.
Current wording
We reported a net loss of$282 million, an operating loss of $168 million and an operating margin of (3.7)% for the six months ended June 30, 2025. This compares to a net loss of $691 million, an operating loss of $663 million and an operating margin of (14.3)% for the six months ended June 30, 2024. Loss per share was$0.79 for the six months ended June 30, 2025 compared to a loss per share of $2.02 for the same period in 2024. Net loss decreased$409 million year-over-year primarily due to the March 2024 write off of Spirit-related costs for $532 million as a result of the termination of the Merger agreement. This decrease was partially offset by lower revenue from softening demand and higher interest expense due to the financing of the TrueBlue® loyalty program in August 2024.
Previous wording
Depreciation and amortization increased by $10 million, or 6.1%, for thethree months ended March 31, 2025 compared to the same period in 2024. This increase was primarily driven by the induction of new aircraft and engines.
Current wording
Depreciation and amortization increased by $17 million, or 5.4%, for the six months ended June 30, 2025 compared to the same period in 2024. This increase wasprimarily driven by the induction of new aircraft and engines.
Previous wording
For the three months ended March 31, 2024, special items included the following:
Current wording
For the six months ended June 30, 2024, special items included the following:
Previous wording
•$532 million relating to Spirit-related costs;
Current wording
•$532 million million relating to Spirit-related costs;
Previous wording
Gain (loss) on investments, net resulted in a$1 million gain for the three months ended March 31, 2025, compared to a $22 million loss for the same period in 2024. The gain in the first quarter of 2025 is primarily related to realized gains on our JetBlue Technology Ventures LLC ("JBV") equity investments. The loss in the first quarter of 2024 is primarily related to a mark-to-market adjustment on our preferred shares of one of our JBV equity investments.
Current wording
Gain (loss) on investments, net resulted in a$4 million gain for the six months ended June 30, 2025. This gain primarily relates to realized gains from maturities of available-for-sale securities. For the six months ended June 30, 2024, gain (loss) on investments resulted in a $23 million loss on certain equity securities. This loss primarily relates to a mark-to-market adjustment on our preferred shares of one of our JBV equity investments.
Previous wording
At March 31, 2025, we had unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities of$3.8 billion, which we believe will be sufficient to satisfy our liquidity needs for at least the next twelve months from the date of this Report, and we expect to meet our long-term liquidity needs with our projected cash from operations, available lines of credit and debt financing.
Current wording
At June 30, 2025, we had unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities of$3.4 billion. We also have a$600 million Citibank undrawn line of credit. We believe this will be sufficient to satisfy our liquidity needs for at least the next 12 months from the date of this Report, and we expect to meet our long-term liquidity needs with our projected cash from operations, available lines of credit and debt financing.
Previous wording
We rely primarily on operating cash flows to provide working capital for current and future operations. Cash flows from operating activities were $114 million and $204 million for the three months ended March 31, 2025 and 2024, respectively. The decrease in operating cash flow is driven by the net change in working capital.
Current wording
We use operating cash flows to provide working capital for current and future operations. Cash flows from operating activities were $(1) million and $190 million for the six months ended June 30, 2025 and 2024, respectively. The decrease in operating cash flow is primarily due to operating losses and net change in working capital.
Previous wording
During the three months ended March 31, 2025, flight equipment capital expenditures included $125 million related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $20 million in spare part purchases. Other property and equipment capital expenditures included ground equipment purchases and facilities improvements for $31 million. Investing activities for the current year period also included $500 million in net purchases of investment securities, $44 million of proceeds from the sale of assets and sale-leaseback transactions, and $11 million in aircraft pre-delivery deposit payments.
Current wording
During the six months ended June 30, 2025, flight equipment capital expenditures included $358 million related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $44 million in spare part purchases. Other property and equipment capital expenditures included ground equipment purchases and facilities improvements for $71 million. Investing activities for the current year also included $804 million in net proceeds from investment securities, $121 million of proceeds primarily from five sale-leaseback transactions and the sale of flight equipment, including seven V2500 engines. Investing activities also included $23 million in aircraft pre-delivery deposit payments.
Previous wording
During the three months ended March 31, 2024, flight equipment capital expenditures included $386 million related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $20 million in spare part purchases. Other property and equipment capital expenditures included ground equipment purchases and facilities improvements for $21 million. Investing activities also included $93 million in net proceeds from investment securities, $39 million in aircraft pre-delivery deposit payments, and $22 million in Spirit shareholder payments.
Current wording
During the six months ended June 30, 2024, flight equipment capital expenditures included $766 million related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $45 million in spare part purchases. Other property and equipment capital expenditures included ground equipment purchases and facilities improvements for $43 million. Investing activities also included $277 million in net proceeds from investment securities, $63 million in aircraft pre-delivery deposit payments, and $22 million in Spirit shareholder payments.
Previous wording
Financing activities for the three months ended March 31, 2025 primarily consisted of $81 million in payments on our outstanding debt and finance lease obligations.
Current wording
Financing activities for the six months ended June 30, 2025 primarily consisted of $228 million in payments on our outstanding debt and finance lease obligations and issuance of common stock of$30 million related to our crewmember stock purchase plan.
Previous wording
Financing activities for the three months ended March 31, 2024 primarily consisted of proceeds from failed sale-leaseback transactions of $332 million partially offset by $58 million in payments on our outstanding debt and finance lease obligations.
Current wording
Financing activities for the six months ended June 30, 2024 primarily consisted of proceeds from failed sale-leaseback transactions of$470 million, issuance of$281 million in equipment notes to finance certain aircraft and issuance of common stock of$31 million related to our crewmember stock purchase plan. These proceeds were partially offset by$166 million in payments on our outstanding debt and finance lease obligations.
Previous wording
We had working capital of $51 million and $377 million at March 31, 2025 and December 31, 2024, respectively. Our working capital decreased by $326 million primarily due higher current air-traffic liability due to seasonality fluctuations.
Current wording
We had a working capital deficit of $512 million at June 30, 2025 and working capital of $377 million at December 31, 2024, respectively. Our working capital decreased by $889 million due to several factors, including fewer investment securities, higher current air traffic liability, and an increase in current maturities of long-term debt. The higher current air traffic liability is due to seasonal fluctuations and the increase in current maturities of long-term debt is due to the Company's 0.5% convertible senior notes, with a principal amount of $325 million, becoming current in the second quarter of 2025.
Previous wording
(3)Amounts primarily include non-cancelable commitments for flight equipment maintenance, construction and information technology.
Current wording
(4)Amounts primarily include non-cancelable commitments for flight equipment maintenance, infrastructure and information technology.
Previous wording
We have$59 million of restricted cash pledged under standby letters of credit related to certain leases that will expire at the end of the related lease terms. Approximately 63% of our owned property and equipment and intangible assets at net book value were pledged or committed to be pledged as security under various loan agreements.
Current wording
We have$57 million of restricted cash pledged under standby letters of credit related to certain leases that will expire at the end of the related lease terms. Approximately 64% of our owned property and equipment and intangible assets at net book value were pledged or committed to be pledged as security under various loan agreements.
Previous wording
(1)This table includes aircraft that have been temporarily removed from service, including 11 aircraft grounded as of March 31, 2025, due to the required removal of certain Pratt & Whitney engines for inspection and lack of engine availability. All aircraft temporarily removed from service are expected to return to operation in the future.
Current wording
(1)This table includes aircraft that have been temporarily removed from service, including eight aircraft impacted by the Pratt & Whitney engine groundings. All aircraft temporarily removed from service are expected to return to operation in the future.
Previous wording
Of our operating fleet,264 are owned by us, 23 are leased under operating leases, and none are leased under finance leases. Our owned aircraft include aircraft associated with sale-leaseback transactions that did not qualify as sales for accounting purposes. As of March 31, 2025, the average age of our operating fleet was 12 years.
Current wording
Of our operating fleet,266 are owned by us, 19 are leased under operating leases, and one is leased under finance leases. Our owned aircraft include aircraft associated with sale-leaseback transactions that did not qualify as sales for accounting purposes, also referred to as failed sale-leasebacks. As of June 30, 2025, the average age of our operating fleet was 12 years.
Previous wording
(2)In addition, we have options to purchase 20 A220-300 aircraft in 2027 and 2028.
Current wording
(3)In addition, we have options to purchase 20 A220-300 aircraft in 2027 and 2028.
Previous wording
We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Report. Non-GAAP financial measures are financial measures that are derived from the condensed consolidated financial statements, but that are not presented in accordance with GAAP. We present these non-GAAP financial measures because we believe they provide useful supplemental information that enables a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides an explanation of each non-GAAP financial measure used in this Report and shows a reconciliation of certain non-GAAP financial measure to its most directly comparable GAAP financial measure.
Current wording
We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Report. Non-GAAP financial measures are financial measures that are derived from the condensed consolidated financial statements, but that are not presented in accordance with GAAP. We present these non-GAAP financial measures because we believe they provide useful supplemental information that enables a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides an explanation of each non-GAAP financial measure used in this Report and shows a reconciliation of certain non-GAAP financial measures to its most directly comparable GAAP financial measure.
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Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
Six Months Ended June 30, 2025 vs. 2024
Current report — wording carried from elsewhere
Our reported results for the six months ended June 30, 2025 included the effects of special items and certain gains and losses on investments. Adjusting for these items, our adjusted net loss(1) was $267 million, adjusted operating loss(1) was $144 million, adjusted operating margin(1) was (3.2)%, and adjusted loss per share(1) was $0.75 for the six months ended June 30, 2025. This compares to an adjusted net loss(1) of $119 million, adjusted operating loss(1) of $100 million, adjusted operating margin(1) of (2.2)%, and adjusted loss per share(1) of $0.35 for the six months ended June 30, 2024.
Current report — wording carried from elsewhere
Passenger revenue is our primary source of revenue, which includes seat revenue and baggage fees, as well as revenue from our ancillary product offerings such as Even More® Space. Passenger revenue decreased $170 million, or 4.0%, for the six months ended June 30, 2025 compared to the same period in 2024. This was mainly driven by a 2.9% reduction in capacity and a 3.6% reduction in revenue passengers.
Current report — wording carried from elsewhere
Other revenue increased $29 million, or 9.5%, primarily due to higher customer spend related to loyalty revenue from the non-transportation elements of the sale of TrueBlue® points. Other revenue also includes revenue from the sale of vacation packages, airport concessions and advertising revenue.
Current report — wording carried from elsewhere
We measure capacity in terms of available seat miles, which represents the number of seats available for passengers multiplied by the number of miles the seats are flown. Yield, or the average amount one passenger pays to fly one mile, is calculated by dividing passenger revenue by revenue passenger miles. We attempt to increase passenger revenue by increasing our yield and also increasing our load factor of flights, when possible. Our objective is to optimize our fare mix to increase our overall revenue per available seat mile while continuing to provide our customers with competitive fares.
Current report — wording carried from elsewhere
In detail, our operating costs per ASM, were as follows:
Current report — wording carried from elsewhere
Aircraft rent decreased $13 million, or 25.3%, in thesix months ended June 30, 2025 compared to the same period in 2024, as a result of fewer leases for Airbus A320 aircraft and Embraer E190 aircraft. The Company purchased certain Airbus A320 aircraft off lease and certain Embraer E190 aircraft leases reached their lease expiration and were returned to the lessor as part of the Company's fleet transition plan.
Current report — wording carried from elsewhere
Interest expense increased by $180 million, for thesix months ended June 30, 2025 compared to the same period in 2024. This increase wasprimarily due to the financing of our TrueBlue® program, the issuance of new equipment notes, and incremental failed aircraft sale-leaseback transactions.
Current report — wording carried from elsewhere
Interest income increased by $34 million, or 90.6%, for thesix months ended June 30, 2025 compared to the same period in 2024. This increase wasprimarily driven by an increase in short term investments from the proceeds received from the TrueBlue® Financings.
Current report — wording carried from elsewhere
(2) This table includes aircraft that have been temporarily removed from service, including eight aircraft impacted by the Pratt & Whitney engine groundings. All aircraft temporarily removed from service are expected to return to operation in the future.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
In thefirst quarter of 2025, we incurred a $208 millionnet loss, compared to a net loss of $716 million for the same period in 2024. Net loss decreased primarily due to the March 2024 write off of Spirit-related costs for $532 million as a result of thetermination of the Merger Agreement.
Previous report — wording carried elsewhere
•$15 million relating to voluntary opt-out costs; and