JetBlue Airways (0JOT) AI Stock Analysis

Company Guidance

JetBlue expects fourth quarter RASM to increase 18% to 22% year-over-year and full-year RASM to increase 13.5% to 14.5%; fourth quarter capacity growth is expected at 3% to 4% and full-year growth at 1.5% to 6.5% year-over-year. Fourth quarter CASM-ex fuel is expected between negative 1% and positive 1% year-over-year, with full-year CASM-ex fuel growth of 3.5% to 4.5%, fuel prices of approximately $4.64 per gallon, and 1 to 2 points of year-over-year adjusted operating margin expansion; full-year adjusted operating margin is expected at negative 4.5% to 6.5%. The company expects operating profitability in 2027 and positive free cash flow and at least $1 of earnings per share in 2028, with annual CapEx approximately $850 million and below $1 billion through the end of the decade; if growing mid single digits in 2027, it expects low-single-digit controllable cost growth. BlueFirst is expected to deliver nearly 5 points of RASM improvement with revenue and margin contributions building through 2028 and beyond, Paisly is on track to deliver nearly $100 million in operating income this year with that contribution expected to nearly double by 2028, and the company expects to draw the incremental $250 million available under its aircraft backed financing accordion in the fourth quarter.