Q2 2025 JetBlue Airways Corp Earnings Call

Good morning.

Abby: My name is Abby and I would like to welcome everyone to the JetBlue Airways second quarter 2025 earnings conference call. As a reminder, today's call is being recorded. At this time, all participants are in a listen-only mode.

Ladies and gentlemen, good morning.

My name is Abby and I would like to welcome everyone. To the JetBlue Airways second quarter, 20125 earnings conference call.

As a reminder, today's call is being recorded.

Koosh Patel: I would now like to turn the call over to JetBlue's Director of Investor Relations, Koosh Patel.

At this time, all participants are in a listen-only mode.

Koosh Patel: Please go ahead, sir. Thanks, Abby.

Koosh Patel: Good morning, everyone. And thanks for joining us for our second quarter 2025 earnings. This morning, we issued our earnings release and a presentation that we will reference during this call. All of those documents are available at our website at investor.jetblue.com and on the SEC's website at www.sec.gov.

I would now like to turn the call over to JetBlue's director of an investor relations Kush Patel. Please go ahead, sir.

Thanks Abby, good morning everyone, and thanks for joining us for our second quarter 2025 earnings call.

Koosh Patel: In New York to discuss our results are Joanna Geraghty, our Chief Executive Officer, Marty St. George, our President, and Ursula Hurley, our Chief Financial Officer.

Koosh Patel: During today's call, we'll make forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding our third quarter and full year 2025 financial outlook and our future results of operations and financial position, including long-term financial targets, industry and market trends, expectations with respect to tailwinds and headwinds, our ability to achieve operational and financial targets, our business strategy, our plans for future operations, and the associated impacts on our businesses. All such forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in these.

This morning, we issued our earnings release in a presentation that we will reference during this call. All of those documents are available on our website at investor.jetblue.com and on the SEC's website at www.sec.gov. In New York to discuss our results, our CEO, Marty St. George; our President, Joanna Geraghty; and our Chief Financial Officer, Ursula Hurley. During today's call, we'll make forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

Koosh Patel: Please refer to our most recent earnings release, as well as our fiscal year 2024 10-K and other filings, for a more detailed discussion of the risks and uncertainties that could cause the actual results to differ materially from those contained in our forward-looking statement. The statements made during this call are made only as of the date of the call, and other than as may be required by law, we undertake no obligation to update the information. Investors should not place undue reliance on these forward-looking statements.

So that's what we're looking statements include without limitation statements regarding our third quarter and full year 2025 Financial Outlook in our future, results of operation, and financial position, including long-term Financial targets industry, and market trends, expectations with respect to Tailwinds and headwinds, our ability to achieve operational, and financial targets our business strategy, our plans for future operations, and the associated impacts on our businesses. All such forward-looking statements are subject to risks and uncertainties and actual results May differ materially from those expressed or implied in these statements, please refer to our most recent earnings release as well as our fiscal year, 2024 10K and other filings and for a more detailed discussion of the risks and

Those contained in our forward-looking statements.

Koosh Patel: Also, during the course of our call, we may reference certain non-GAAP financial measures. For an explanation of these non-GAAP measures and a reconciliation of the corresponding GAAP measures, please refer to our earnings release, a copy of which is available on our website and on sec.gov.

Joanna Geraghty: And now, I'd like to turn the call over to Joanna Geraghty, JetBlue C. Good morning, and thank you for joining JetBlue's second quarter earnings. During the second quarter, we made meaningful progress with JetForward and met or exceeded guidance across all key metrics. Despite facing an uncertain macro backdrop, I am pleased that we produced a modest operating process. We ran a strong operation and once again saw significant gains in customer satisfaction with second quarter net promoter score up double digits year over year. I want to take a moment to thank our crew members. These results are a reflection of all of their hard work.

The statements made during this call are made only as of the date of the call and other than as may be required by law. We undertake no obligation to update the information investors should not Place undue Reliance on these where we're looking statements. Also during the course of our call. We may reference a certain non-gaap Financial measures for for an explanation or decent non-gaap measures and a Reconciliation of the corresponding Gap measures. These are for our earnings release, a copy of, which is available on our website and on sec.gov. And now I'd like to turn the call over to Joanna geraghty, Jeff blue CEO.

Good morning and thank you for joining JetBlue's second quarter earnings call. During the second quarter, we made meaningful progress with JetBlue and met or exceeded guidance across all key metrics.

Despite facing an uncertain macro backdrop, I am pleased that we produced a modest operating profit.

We ran a strong operation and once again saw a significant gains in customer satisfaction with second quarter, net promoter score up double digits here over a year.

Joanna Geraghty: As we entered the second quarter, demand stabilized and then accelerated as the quarter progressed. This resulted in a higher mix of close-in bookings. I am encouraged that we also saw this close-in strength carry forward into July.

I want to take a moment to thank our crew members. These results are a reflection of all their hard work.

Joanna Geraghty: However, I will note that weather and ATC-related disruptions throughout the month of July have impacted operations. In May, we marked another jet-forward milestone, introducing Blue Sky, our collaboration with United Airlines. I am pleased to say that we received confirmation that the Department of Transportation has completed their review, and we are now able to begin implementing Blue Sky. We'd like to thank Secretary Duffy, Assistant Secretary Edwards, and the entire team at DOT for their engagement and thoughtful review of Blue Sky. As a reminder, this collaboration will benefit customers, increase the utility of True Blue, and further strengthen each airline's loyalty program.

As we entered the second quarter, demand stabilized, and then accelerated. As the quarter progressed, this resulted in a higher mix of close in bookings, I'm encouraged that we also saw this close in strength, carry forward into July. However, I will note that whether an ATC related disruption throughout the month of July have impacted operations.

In may we marked another jet forward Milestone introducing Blue Sky our collaboration with United Airlines.

I am pleased to say that we received confirmation that the Department of Transportation has completed their review, and we are now able to begin implementing Blue Sky.

We'd like to thank Secretary Duffy, Assistant Secretary Edward, and the entire team at Do for their engagement and thoughtful review of Blue Sky.

Joanna Geraghty: Blue Sky will enable JetBlue to sell nearly all of its flights on United.com via a traditional interline agreement and vice versa, with the opportunity to earn and redeem loyalty points across each other's networks. United will also transition its distribution of non-flight ancillaries, such as hotels, rental cars, and more, to our travel product subsidiary Teasley, turbocharging its high-margin growth. Blue Sky links two complementary networks with industry-leading products and services to increase customer choice and benefits while promoting healthy competition. Our collaboration is expected to contribute an incremental $50 million in EBIT through 2027, accelerating JetFocus. Including the benefit from Blue Sky, we are increasing our target for Jet Forward EBIT to a range of $850 to $950 million through 2027.

As a reminder, this collaboration will benefit customers increase the utilities of True Blue and further strengthen each Airline loyalty program.

Blue Sky will enable JetBlue to sell nearly all of its flights on united.com via a traditional Interline agreement and vice versa with the opportunity to earn and redeem loyalty points across each other's Networks.

United will also transition its distribution of non-flight ancillaries such as hotels, rental cars and more to our travel product. Subsidiary, Paisley turbocharging, its high margin growth.

Blue Sky, Lynx 2, complimentary networks with industry-leading products and services to increase customer choice and benefits while promoting healthy competition.

The collaboration is expected, contribute, an incremental 50 million in ebit, through 2027.

Accelerating jet forward.

Joanna Geraghty: Marty will share more details on the individual drivers, but we are excited that Blue Sky will build on the tremendous progress we've made to date. We are also pleased to report that our aircraft-on-the-ground forecast, due to the Pratt & Whitney GTF issue, has improved, and we now expect to cycle through groundings much faster as a result. The revised forecast enables us to begin growing capacity again in 2026 through the end of the decade, and achieve a more favorable unit cost growth trajectory. Ultimately, this will support our path back to restoring profitability.

Including the benefit from Blue Sky. We are increasing our Target for jet for jet forward ebit to a range of 850 to 950 million through 2027.

Marty was share more details on the individual drivers, but we are excited that blue sky will build on the tremendous progress. We've made to date.

We are also pleased to report that our aircraft on the ground forecast due to the Pratt and Whitney GTF issue has improved. We now expect a cycle through grounding much faster as a result. The revised forecast enables us to begin growing capacity again in 2026 through the end of the decade and achieve a more favorable unit cost growth trajectory.

Joanna Geraghty: Turning to page four of the earnings presentation. In 2024, we had a strong start to JetForward and realized $90 million in EBIT early due to the success of revenue initiatives launched last year that ran faster than we anticipated, including preferred seating and enhancements to our BlueBasic offering. The first half of 2025, we've continued building on that. realizing an additional $90 million in EBIT across our four priority moves. despite a far more challenging macroenvironment. Cumulatively, we have achieved $180 million EBIT to date and remain on track to reach $290 million in JetForward EBIT benefits by year-end.

Ultimately, this will support our path back to restoring profitability.

Turning to page 4 of the earnings presentation.

in 2024, we had a strong start to Jet forward and realized 90 million of ebit early due to success of Revenue initiatives launched last year that ramped faster than we anticipated, including preferred seating and enhancements to our blue basic offering

In the first half of 2025, we've continued building on that momentum.

Realizing in additional 90 million in ebit across our 4, priority moves. Despite a far more challenging macro environment.

Joanna Geraghty: Our efforts to drive a more reliable operation, part of our reliable and caring service priority moves, have brought significant operational improvements in the first half of 2025. Our on-time performance was up three points year over year, and completion factor was up a half a point. Both industry leading improvements. These improvements are also reflected in our customer satisfaction. For the first half of 2025, our Net Promoter Score was up double digits year over year, building on improvements made in 2024. In all, efforts to run a more reliable operation have contributed approximately $15 million of incremental EBIT benefit over the first half of 2025.

Cumulatively. We have achieved, 180 million ebit to date and remain on track to reach 290 million in jet forward, ebit benefit by year end.

Our efforts to drive a more reliable operation, part of our reliable and caring service priority move, have brought significant operational improvements in the first half of 2025.

Our on-time performance was up 3.0 over a year. The Completion Factor was up a half a point, both industry-leading improvements.

These improvements are also reflected and our customer satisfaction scores and for the first half of 2025, our net promoter score was up double digits year-over-year, building on improvements. Made in 2024.

Joanna Geraghty: we realized cost benefits from reduced disruption-related spend, such as lower overtime pay and fewer customer re-accommodations. Additionally, we are seeing indications that customers are choosing us more often, proof that the investments we are making in our operation, such as implementing increased schedule buffers and launching new tools to enable customer self-service, are having a positive impact. We believe that on-time performance and customer satisfaction are leading indicators for improved financial performance, and that running a strong operation is essential.

Did approximately 15 million of incremental even benefit over the first half of 2025.

We realized cost benefits from reduced disruption related, spend such as lower overtime, pay and fewer customer re-accommodation.

Additionally, we are seeing indications that customers are choosing us more often.

Proof that the investments we are making in our operations, such as implementing increased schedules, buffers, and launching new tools to enable customer self-service, are having a positive impact.

Joanna Geraghty: These investments are especially important when we face disruptive weather, which is often compounded by air traffic control challenges, as we have experienced across our network in July. Our efforts to adjust the network to our strengths and build the best East Coast leisure network are also maturing nightly. As you recall, in 2024, we closed 15 blue cities and redeployed over 20% of our network as we realigned to serve our four countries. changes are ramping and are showing signs of relative improvement. For example, newer markets in secondary northeast cities are exceeding expectations and are showing positive early traction.

We believe that on-time performance and customer satisfaction are leading indicators for improved, financial performance. And that running a strong operation is essential.

These Investments are specially important. When we Face disruptive weather, which is often compounded by air traffic control challenges as we have experienced across our Network in July.

Our efforts to adjust the network to our strengths and build the best East Coast. Leisure networks are also maturing nicely

As you recall in 2024 we closed 15 blue cities and redeployed over 20% of our Network as we realigned to serve our core customers.

These changes are ramping and are showing signs of relative Improvement.

Joanna Geraghty: Overall, network optimization represents 15 million incremental ebits over the first half of the year.

For example, newer markets and secondary Northeast cities are exceeding, expectations and are showing positive early traction.

Joanna Geraghty: as part of our Product and Purpose Priority. Preferred Seating continues to outpace expectations, and our new premium credit card is on track to double full-year projections for acquisitions, highlighting the tremendous amount of demand by customers for our premium product. lounges slated to open in JFK during the first quarter and in Boston Logan in 2026 remain on track and will complement our premium car to enhance the overhaul value proposition of TrueBlue. We are also updating our onboard experience to better serve our premium. This includes the enhancements to even more launched earlier this year.

Overall, network optimization represents $15 million in incremental EBITs over the first half of the year.

As part of our products and per priority, move referred seating continues to outpace expectations. And our new premium. Credit card is on track to double full year projects for Acquisitions. Highlighting the tremendous amount of Demand by customers for our premium products.

Lounges slated to open in JFK during the first fourth quarter and in Boston Logan in 2026 remain on track and will complement our premium card to enhance the overall value proposition of True Blue.

Joanna Geraghty: and we also remain on track to begin rolling out domestic first class in 2020. At the same time, we are reinvesting in our brand and living the fun value. 25 for 25, JetBlue's 25th birthday promotion, our partnership with Bad Bunny, and our newly released Dunkin' and Super Mario livery are driving excitement and reinforce our unique style and brand. Altogether, products and perks have generated $35 million in incremental EBIT during the first half of 2025.

We are also updating our onboard experience to better serve our premium customers. This includes the enhancements to even more launched earlier this year.

And we also remain on track to begin rolling out. Domestic first class in 2026,

at the same time, we are reinvesting in our brand and living the fund value. 25 for 25, Jeff lose 25th birthday promotion, our partnership with Bad Bunny and our newly released Duncan and Super Mario delivery are driving excitement and reinforced our Unique Style and brands.

Joanna Geraghty: Lastly, our cost transformation is underway to secure our financial future, with around 100 initiatives focused on technology enhancements throughout our business, supporting customer self-service, disruption management, and fuel savings. In total, cost savings have driven $25 million in EBIT and have contributed to our controllable cost outperformance, with the second quarter marking our seventh consecutive quarterly cost outperformance. JetForward is a comprehensive multi-year transformation, and we are making meaningful progress. Our operation is improving. We are building on our industry-leading in-flight experience. Reigniting JetBlue's spirit of innovation and disruption. We know there's more work ahead, but the momentum we've built gives us confidence that JetForward is the right plan, supported by the best crew members in the industry and a leadership team that is acting with urgency to meet the demands of a dynamic operating environment.

Altogether, products of perks have generated $35 million of incremental EBIT. During the first half of 2025,

Lastly, our cost transformation is underway to secure our financial future with around 100 initiative technology enhancements throughout our business.

Supporting customer self-service, disruption management and fuel savings.

In total cost savings, we have driven $25 million in EBIT and have contributed to our controllable costs outperformance, with the second quarter marking our seventh consecutive quarterly cost speech.

JetBlue Forward is a comprehensive multi-year transformation, and we are making meaningful progress.

Our operation is improving. We are building on our industry-leading and flight experience, and we are getting back to our roots.

Reigniting JetBlue's Spirit of innovation and disruption.

Marty St. George: And with that, over to you, Marty. Thank you, Joanna, and thank you to all of our... As Joanna noted, improvements to our operational performance and customer satisfaction are true testaments to the work that you do day in and day out. It does not go unnoticed. I'm thrilled to share that during this quarter, JetBlue was recognized by J.D. Power as the top airline for first and business class customer satisfaction in the 2025 North America Airline Satisfaction Study. Our core experience also rose to respond to second place in the economy and basic economy segment. and two spots to second place in the premium economy segment to be added to 2024.

We know there's more work ahead but the momentum we've built gives us confidence that jet forward is the right plan supported by the best crew members in the industry and a leadership team that is acting with urgency to meet the demands of a dynamic operating environment.

With that over to you. Marty thank you Joanna. And thank you to all of our crew members.

As Joanna, noted improvements to our operational performance and customer satisfaction. Our true Testament to the work that you do day in and day out.

It does not go unnoticed.

I'm thrilled to share the journey with water Jack who was recognized by JD Power at the top Airline for first, and business class customer satisfaction and the 2025 North America Airline satisfaction study.

Marty St. George: JetForward, and York Commitment to the Plan are driving real results and recognition. Over the quarter, we saw encouraging signs of an improved demand environment as the number of closed-end bookings accelerated as the quarter progressed.

Our core experience also Rose, 3 spots, the second place in the economy and basic economy, segments and 2 spots to second place in the premium economy, segment 2024 jet forward and your commitment to the plan are driving real results and recognition.

Marty St. George: Before we review quarterly results, I want to take a moment to talk more about BlueSky I'm very excited to announce this new collaboration with United. As we evolve our network, it is even more important to provide customers with more choices to earn and redeem through Blueprint. Fuscai features three primary value drivers. First, it will greatly increase choice for Foodbook members through the implementation of a traditional interline agreement which expands our distribution reach and customer choice by cross-merchandising flights on one of those websites and apps. Second, the collaboration promotes the growth of our loyalty business by offering reciprocal earn and burn between programs and elite status recognition, increasing utility of our points and the breadth and value of our program.

Over the quarter, we saw encouraging signs of an improving demand environment as the number of close bookings accelerated throughout Q2.

Before we review quarterly results, I want to take a moment to talk more about blue sky.

I'm very excited to be announced this new collaboration with the United.

As we evolve our network, it is even more important to provide customers with more choices to earn and redeem through Google Points.

Who Sky features 3 primary value drivers.

Agreement, which expands our distribution reach and customer Choice by cross merchandising, flights on 1 of those websites and apps.

Marty St. George: Lastly, the collaboration will supercharge us high margin, high growth and capital like Paisley Business, which is JetBlue's white label platform for the distribution of hotels, ralcars, cruises, travel insurance, and packages under brands such as United and other. These EBITS benefits are split between our Network Priority Move for interline benefits and our Product and Purchase Priority Move for loyalty and pagely benefits. This guy is accelerating our transformation while bringing demonstrable benefits to customers across us. Further, while the partnership is expected to begin generating value as soon as the fourth quarter, we are already seeing promising early traction.

Second, the collaboration promotes the growth of our loyalty business by offering reciprocal earn and burn between programs and Elite status recognition, increasing the utility of our points and the breadth and value of our program.

Lastly, the collaboration will supercharge high-margin, high-growth capital like Paisley's business, which is JetBlue's white-label platform for the distribution of hotels, rental cars, cruises, travel insurance, and packages.

Under Brands such as United States and others.

So easy. These benefits are even split between a network priority, move for interline benefits, and that product and purchase priority move, but broadly, they pay the benefits. This guy is accelerating our transformation while bringing demonstrable benefits to customers across our system.

Further, while the partnership is excited to be, excuse me is expected to begin, generating value. As soon as the fourth quarter,

Marty St. George: is announcing Blue Sky at the end of May. New credit card sign-ups accelerated. In fact, we've seen a double-digit increase in average daily conduct positions in geographies outside JetBlue's core map. This is early evidence that the collaboration is increasing our relevance and making the True Blue program more attractive.

We're already seeing promising early traction.

Since announcing blue sky, at the end of May new credit cards. Sign ups accelerated in June

In fact, we've seen a double digit increase in average daily content Acquisitions in geographies outside JetBlue's core markets.

Marty St. George: On slides 8 and 9, we discuss the details of our second quarter review results, and our unit review progression will be in the third quarter. We ran a strong operation during the second quarter and achieved a completion factor of 99.6%. Weather was generally favorable during the quarter. Despite the typical convective weather challenges we saw during the back half of the year, We ended the second quarter with capacity down 1.5% year-over-year, towards the better end of our initial range of down 3.5% to down 0.5%. to the entrance of the first quarter, continue into the second, with bookings characterized by strong peaks and relatively weaker troughs.

This is early evidence that the collaboration and increasing our relevance and making the true blue program more attractive.

On slide date 9. We discussed the details of our second quarter Revenue results and our unit rate progression will be the third quarter.

We ran a strong operation during the second quarter and achieved a completion factor of 99.6%.

whether it was generally favorable during the quarter,

Despite the typical convective weather challenges beside during the back half of June.

We ended the second quarter with the capacity down 1.5% year-over-year towards the better end of our initial range of down 5 3.5 to 0.5%.

Marty St. George: As the quarter progressed, we saw significant strength in bookings within 14 days of travel. The closing bookings were especially apparent for peak travel and for our In addition to close-in strength, our second quarter results were supported by actually a better match supply with demand. Early in the quarter, we took significant capacity action in the troughs, and we removed almost 8 points of offbeat capacity from May and 3 points in June, compared to the plan at the beginning of the year. both the Easter and Memorial Day weekend page performed by. The East Shift added almost 1.5 points to the second quarter round.

Demand trench for the first quarter continue into the second but booking characterized by strong Peaks and relatively weaker trusts.

As a quarter progressed, we saw significant strength in bookings, within 14 days of travel.

The closing of bookings were, especially apparent for Peak Travel and throughout June.

In addition to closing the strength.

A second quarter of Ras results were supported by actually the better match Supply with demand.

Early in the quarter. We took significant capacity action in the troughs and we removed almost 8 points above the capacity for May and 3 points in June compared to the plan at the beginning of the year.

Both the Easter and Memorial Day Weekend performed well.

Marty St. George: Peak rating for the quarter was positive on work capacity year-over-year. We also experienced nearly a point of resident benefit from newer book away. and their traffic disruptions cause customers to temporarily shift travel to alternate airports in multiple neighborhoods. That benefit was transitory as the runway reopened in early... Overall, unit revenues declined 1.5% year-over-year in the second quarter, two points above the top end of our guidance. The nature of closeness bookings made forecasting challenging, even within the quarter, and in May and June, revenues generated within 14 days of travel increased 7% year-over-year. Premium Cabin, Loyalty, and Transatlantic continue to demonstrate resilience.

The East shift added almost 1.5 points. The second quarter round.

Peak, rather, for the quarter was positive on what capacity year over year?

We also experienced nearly a point of Resident benefits from Newark book Away.

Are there traffic disruptions causing customers to temporarily shift travel to ultimate airports and multiple neighboring states?

That benefit was transitory as a Runway reopened early June.

Overall, you need to climb 1.5% year-over-year in the second quarter.

2 points above the top end of our guidance range.

In nature close in bookings, May forecasting challenging even within the quarter.

And a May and June February generated, within 14 days to travel increase 7% every year.

Marty St. George: Premium unit revenues are up mid-single digits year-over-year during the quarter. and loyalty remunerations were up 9% year-over-year. International continue to perform well, with transatlantic unit revenues up low single digits for the quarter. As you look to the third quarter, we have seen the closest strength carry into July, including the 4th of July holiday period. We expect year-over-year unit revenue to be down between 6% and down 2% on ASMs ranging between down 1% and up 2%. As Joanna mentioned, we have faced more weather challenges than usual and elevated air traffic control delays throughout July, which have pressured the operation and our completion factor thus far in the third quarter.

Premium cabin, loyalty and transatlantic continued to demonstrate resilience.

Premium unit revenues are up mid-single digits year-over-year during the quarter.

And loyalty remunerations were up 9% year-over-year.

To perform well.

Which transatlantic unit revenue was up low, single digits for the quarter.

As we look to the third quarter, we have seen the closest strength carrier in July, including the Fourth of July holiday peak.

We expect our unit revenue to be down between 6% and down 2% on ASMs, ranging between down 1% and up 2%.

Marty St. George: I've heard quota capacity guidance assumes a more typical operating environment for August and September. and we'll continue to monitor our operations closely as the quote progresses. We anticipate a similar demand environment in the third quarter compared to the second, with a continuation of strong peaks, elevated closer bookings, and weaker troughs. Notably, while demand is improving, there are a few one-time considerations that are impacting our sequential rapid progression. In the second quarter, we benefited from both the Easter shift and Newark, representing roughly two points of ragamuffin. During the third quarter, we'll be lapping one point of cross-strength battle.

As you and I mentioned, we have faced more weather challenges than usual and elevated Air Traffic Control delays throughout July, which you have pressed on the operation and that completion factor thus far in the third quarter.

Our third quarter capacity, guidance assumes a more typical operating environment for August and September.

And we'll continue to monitor our operations closely as a quarter progresses.

We anticipate a similar demand environment in the third quarter compared to the second.

Where the continuation of strong Peaks elevated closer to bookings, and weaker trusts.

Notably while demands are proving. There are a few 1-time considerations that are impacting. Our sequential rates of aggression.

In the second quarter, we benefited from both the Easter shift and New York representing roughly 2 points of arrangement uplift.

Marty St. George: or unlike many of our peers, we realized a revenue gain from peer book away during the event last Additionally, the midpoint of our guidance for the third quarter translates to a roughly two-point sequential increase in year-over-year capacity. Just in case considerations, our third quarter revenue guidance implies continued demand and unit revenue improvement as we head into the second half of the year.

During the third quarter, we'll be seeing a 1-point increase from Cross, strike benefits, or unlike many of our peers, we utilize a revenue gain from peer book Away during the event last year.

Additionally, the midpoint of our guidance.

For the third quarter translates to a roughly 2 point sequential increase in year-over-year capacity.

Marty St. George: right around the end of the fourth quarter. We are optimistic that demand will continue to improve, and we're using this as our overarching planning assessment. However, revenue forecasting remains challenging, given the elevated levels of posts and bookings and an improving but still choppy macro environment.

For a resin guidance implies continued demand and unit Revenue as we head into the second half of the year.

Further out into the fourth quarter.

We are optimistic that demand will continue to improve and we're using this as our overarching planning assumption.

Marty St. George: Therefore, we will not be providing revenue guidance beyond Q3.

Ursula Hurley: Thank you, and now over to Ursula for an update on our balance sheet and cost outlook. Thank you, Marty. During the second quarter, we generated a modest operating profit, a small step on our road to sustained profitability. We also adjusted our fleet plan, remained disciplined with our balance sheet, and continued executing on our cost goals. These actions are grounded in our overarching objectives to enable capital efficient, long-term growth, drive profitability, and generate free cash flow.

However, revenue forecast remains challenging giving elevated levels of clothes and bookings and an improving but still choppy macro environment. Therefore we will not be providing Revenue guidance Beyond Q3

Thank you. And now, over to Ursula for an update on our balance, sheet and C.

During the second.

Row to sustain profitability.

We also adjusted our Fleet plan remain disciplined with our balance sheet and continued executing on our cost goals.

Ursula Hurley: Turn it to slide 11 for an update on our At the onset of the year, we shared that our Pratt & Whitney GTF-related aircraft groundings were expected to average mid to high teens for the duration of 2025 and to peak one to two years into the future. I'm very pleased to announce that the forecast for aircraft on the ground has improved materially, and we now expect to average fewer than 10 AOGs this year and believe that 2025 represents the with the number set to reduce as we progress into 2026 and fully resolve by the end of 2027.

These actions are grounded in our overarching objectives to enable Capital, efficient long-term growth drive profitability and generate free cash flow.

Turning to slide 11 for an update on our Fleet.

At the onset of the year, we share that our Pratt and Whitney gtf related. Aircraft, grounding with were expected to average mid to high teens for the duration of 2025 and 2 Peaks, 1 to 2 years into the future.

Ursula Hurley: The improved AOG forecast is primarily driven by the extension of required maintenance intervals due to better-than-expected GTS durability performance and aggressive self-help we have undertaken to source spare engines. As a result of geared turbofan challenges, we have not grown capacity since 2023, which has put meaningful pressure on unit costs and significantly impacted profitability. The revised forecast now positions us to return to long-term capacity growth beginning next year. Since these aircraft are returning to service and are not new deliveries, they represent an extremely capitalized source of growth. This will allow us to return to a more favorable unit cost growth trajectory, supporting our return to profitability and free cash flow generation.

I'm very pleased to announce that the forecast for aircraft on the ground has improved materially. And we now expect to average fewer than 10 aogs this year and believe that 2025 represents the peak with the number set to reduce as we progress into 2026 and fully resolved by the end of 2027.

The improved, AOG forecast, is primarily driven by the extension of required maintenance. In our goals due to better than expected GTS durability performance and aggressive self-help. We have undertaken to Source spare engines.

As a result of geared turbo fan challenges, we have not grown capacity since 2023, which is put meaningful pressure on unit costs and significantly impacted profitability.

The revised for forecasts now positions us to return to long-term capacity growth beginning next year.

Since these aircraft are returning to service and are not new deliveries, they represent an extremely capitalized source of growth.

Ursula Hurley: Growing sustainably is important to our JetForward strategy, and we have pursued various initiatives to balance growth, optimize earnings, and preserve capital across our fleet types. With our A320 fleet, we had planned to restyle all 10 of our remaining A320 classes to mitigate AOG capacity pressure. Given the improved AOG forecast, we have decided to pause the restyling of four aircraft and will instead park them after the summer peak, as previously communicated to our crew members. As we manage growth and balance sheet health, we have also decided to sell our two upcoming XLR deliveries. As a reminder, last year, we deferred roughly $3 billion worth of aircraft delivery into the 2030s, including the majority of our A321 order box.

This will allow us to return to a more favorable. Unit cost birth trajectory supporting our return to profitability and free cash flow generation.

Growing sustainably is important to our jet forward strategy and we have pursued various initiatives to balance growth, optimize earnings and preserve Capital across our Fleet types.

With our A320 fleet, we had planned to restyle all 10 of our remaining A320 Classics to mitigate AOG capacity pressure.

Given the improved AOG forecast. We have decided to pause to resilience of 4 aircraft and will instead Park them after the summer Peak as previously, communicated to our crew members.

As we manage growth and balance sheet health, we have also decided to sell our two upcoming XLR deliveries.

Ursula Hurley: Inducting these XLR deliveries would result in a costly orphan fleet of two aircraft for the remainder of the decade.

As a reminder last year, we deferred roughly 3 billion dollars worth of aircraft delivery into the 2030s, including the majority of our a321 order books.

Ursula Hurley: Lastly, as previously announced, we officially end E-190 flying at the end of this summer, simplifying our fleet from three to two types, the Airbus A220 and A320 family. The A220 replaces our E190s and offers higher gauge with 90% greater premium seat exposure and better fuel efficiency, resulting in a 25-30% improvement in direct operating costs per seat. We took delivery of our 50th A220 earlier this month, and the fleet type represents the majority of our order blocks through 2029. For our E-190 fleet, I'm pleased to announce we now have binding sale agreements for all 25 owned E-190 aircraft and engines.

Inducting these XLR deliveries would result in a costly orphan slate of 2 aircrafts for the remainder of the decade.

Lastly, as previously announced, we officially end e190 flying at the end of this summer, simplifying. Our Fleet from 3 to 2 types. The Airbus a220 and 8320 families.

The a220 replaces, our e190sr.

We took delivery of our 50th a220 earlier this month and the fleet type represents the majority of our order block through 2029.

Ursula Hurley: The transition began in the third quarter and will continue through the first half of 2026. Altogether, our revised sleep plan will enable sustainable and capital prudent capacity growth through the remainder of the decade. Starting in 2026, we anticipate CapEx will decline steadily through the end of the decade, commensurate with our delivery schedule, and trend below a billion dollars annually. The fleet actions will also help to preserve liquidity in the short term. And in the second quarter, we ended with $3.4 billion in liquidity, excluding our $600 million undrawn revolver. This represents 37% of trailing 12 months revenue compared to our liquidity target of approximately 20% and we remain on track to end 2025 in excess of our target.

For e190 Fleet. I'm pleased to announce we now have finding sale agreements for all. 25 ohms, e190 aircraft and engines.

The transition began in the third quarter and will continue through the first half of 2026.

Has to be growth through the remainder of the decade.

Starting in 2026, we anticipate capex will decline steadily through the end of the decade, commencing with our delivery schedule and trending below $1 billion annually.

The fleet actions will also help to preserve liquidity in the short term.

and in the second quarter, we ended with 3.4 billion in liquidity, excluding our 600 million and drawn revolver

Ursula Hurley: Turning to slide 12 for our second quarter cost results and third quarter outlook. The second quarter was another strong quarter for top performance. Driven by our operational execution and the progress of our jet-forward cost transformation program, the team successfully mitigated pressures from close-in capacity adjustments to end the quarter with CASM-X fuel up 6% year-over-year, better than our initial guidance of up 6.5% to 8.5%. This marks the seventh consecutive quarter we have achieved or beat our cost guidance. The beat is primarily from a better than expected completion factor for the quarter as well as timing shifts and fleet transactions.

This represents 37% of trailing 12 months Revenue compared to our liquidity Target of approximately 20% and we remain on track to end 2025 in excess of our Target.

Turning to the slide 12 for our second quarter cost results and third quarter Outlook.

The second quarter was another strong quarter for cost performance.

Driven by our operational execution and the progress of our jet forward cost transformation programs. The team successfully mitigated pressures from closing capacity adjustments to end the quarter with Chasm, ex fuel at 6% year-over-year,

Better than our initial guidance of up, 6 and a half to 8 and a half percent.

This marks the 7th consecutive quarter we have achieved or beat our pass guidance.

Ursula Hurley: In addition to reducing capacity, we assessed our organizational structure and combined or restructured certain roles for greater efficiency at the leadership level. We also implemented across-the-board budget reductions at support centers and are closely assessing all spending. The last portion of the peat was attributable to these cost actions during the quarter as we took steps to respond to the evolving demand environment.

The beat is primarily from a better-than-expected completion factor for the corner, as well as timing shifts and Fleet transactions.

In addition to reducing capacity, we assess our organizational structure and combine or restructure certain roles for greater efficiency at the leadership level.

We also implemented across the board budget. Reductions at support centers and are closely, assessing all spending.

Ursula Hurley: As part of our efforts to return focus to our core business, we also announced the sale of assets from JetBlue Ventures to SkyLink. This unique transaction allows us to retain the upside of the investment portfolio and other benefits, including continued access to cutting edge companies with greatly reduced costs. We expect to begin realizing these savings over the second half of this year. For the third quarter, we expect CASM-X fuel to be up 4-6%, with approximately 3 points driven by maintenance and roughly 2 points from crew member wages, as we fully lap the pilot wage increase from last August.

Portion of the beat attributable to these cost actions during the quarter as we took steps to respond to the evolving demands environment.

As part of our efforts to return focus to our core business, we also announced the sale of assets from JetBlue Ventures to Sky Leasing.

This unique transaction allows us to retain the upside of the investment portfolio and other benefits, including continued access to cutting-edge companies with greatly reduced costs.

We expect to begin realizing these savings over the second half of this year.

Ursula Hurley: Additionally, our third quarter CASM-X has been pressured by a difficult operation in July, representing a one-point CASM-X headwind from overtime, premium wages, and other disruption-related expenses. Our guidance assumes a more typical operating environment for August and September. Also for the third quarter, there are roughly two points of Chasm X benefit driven by fleet transactions, the majority of which is the gain on sale from a portion of our E-190. We expect jet fuel to be in the range of 250 to 265 per gallon over the quarter, and we currently have no fuel hushes in place. For the full year, we remain focused on controlling what we can, and I'm pleased to announce we expect full-year CASM-X fuel of up 5-7% year-over-year on 1.5 fewer points of ASM at the midpoint of our guidance.

For the third quarter, we expect cassin X fuels the up 4 to 6% with approximately 3 points driven by maintenance, and roughly 2 points from crew member wages. As we fully lap the pilot wage increased from last August.

Additionally, our third quarter has an act has been pressured by a difficult operation in July representing. A 1 Point has an act headwind from overtime premium wages and other disruption related expenses.

Our guidance assumes a more typical operating environment for August and September.

Also, for the third quarter, there are roughly 2 points of Chasm X benefit driven by fleet transactions. The majority of which is the gain on sale from a portion of our E190.

We expect jet fuel to be in the range of 250 to 265 per gallon over the quarter. And we currently have no fuel hutches in place.

Ursula Hurley: This reinstates our initial unit cost guidance from the onset of the year, despite lower capacity, illustrating the benefits of our strong operation and cost reduction program. At the same time, our full-year interest expense remains unchanged at $600 million, and our new capital expenditure forecast for 2025 is $1.2 billion, down slightly from our prior guidance. We are working tirelessly to deliver value to our owners, customers, and crew members. And we remain confident that JetForward is the right plan to get us there. We have the team, the strategy, and the runway in place to drive transformational change.

For the full year, we remain focused on controlling what we can. And I'm pleased to announce we expect full year, ex-fuel revenue to be up 5 to 7% year-over-year, with 1.5 fewer points of ASF at the midpoint of our guidance.

It's reinstated. Our initial unit cost is from the onset of the year. Despite lower capacity illustrating the benefits of our strong operation and cost reduction programs.

At the same time our full year interest expense remains unchanged at 600 million and our new capital expenditure forecast for 2025 is 1.2 billion dollars down slightly from our prior guidance.

We are working tirelessly to deliver value to our owners customers and crew members.

And we remain confident that jet forward is the right plan to get us there.

Ursula Hurley: And we're already seeing clear, tangible results in our operations, in customer satisfaction, and in our path back to profitability.

We have the team, the strategy, and the runway in place to drive transformational change.

Abby: Thank you, and we will now open it up for questions. Back to you, Abby. Thank you.

And we're already seeing clear tangible results in our operations in customer satisfaction and in our path back to profitability.

Thank you, and we will now open it up for questions, back to you, Abby.

Abby: If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join If you would like to withdraw your question, If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

Thank you.

If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 a second time.

Abby: To be able to take as many questions as possible, we ask that you please limit yourself to one question and one follow-up. Again, it is star one to join the queue.

If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your questions.

To be able to take as many questions as possible, we ask that you please limit yourself to one question and one follow-up.

Dan Mckenzie: And our first question comes from the line of Dan McKenzie with Seaport Global. Your line is open. Oh, hey, good morning, guys. Great job on the second quarter. A couple of questions here.

Again, it is star 1 to join the queue.

And our first question comes from the line of Dan McKenzie with Seaport Global. Your line is open.

Marty St. George: If I get to start with growth from diminishing AOG starting in 2026, I wonder if you can just help us size the pace of that growth that we should expect. And just related to this, how much larger could JetBlue be today without adding pilot headcount? Good morning, Dan. Thanks for the question. Given all the puts and takes with the fleet, we tried to lay out all the transactions that essentially are delivering be able to grow low single digits starting in 2026 through the end of the decade. So, we're extremely pleased with the improvement in the AOG forecast, which we will complete and be through by the end of 2027.

Oh hey, good morning guys. Um uh great job on the uh, the second quarter. Um, a couple of questions here, if I get to start with growth from diminishing, AOG starting in 2026,

Wonder if you can just help with size, the pace of that growth that we should expect and and just related to this, how much larger could JetBlue be today without adding pilot headcount.

Good morning, Dan. Thanks for the question. Um, given all the puts and takes, um, with the fleet. Um, we tried to lay out all the transactions that essentially are delivering us.

Marty St. George: And then we've been trying to optimize the rest of the fleet, whether it be retiring the E190s, simplifying it by selling the 2XLRs, and then deferring just some restyles. So, we've landed on this low single digit. Obviously, we're willing and able to respond to the macro backdrop over that time frame and increase capacity slightly or decrease capacity to better match the outlook based on the demand environment. So, that's the trajectory. Obviously, we're extremely pleased to be able to see the light at the end of the tunnel in terms of the AOGs, because this has been a material headwind on JetBlue.

Marty St. George: And I do believe that when the macro environment continues to improve, that this will be a tailwind for us.

To be able to grow low single digits, starting in 2026, through the end of the decade. So, we're extremely pleased with the improvement in the AOG forecast, which we will complete and be through by the end of 2027. And then we've been trying to optimize the rest of the fleet, whether it be retiring the E90s, simplifying it by selling the 2XL RS, um, and then deferring just some recycles. So we've landed on this low single digits. Obviously, we're willing and able to respond to the macro backdrop over that time frame and increase capacity slightly or decrease capacity, the better match. Um, the outlook based on the demand environment. So, that's what trajectory, obviously, we're extremely pleased to be able to see the light at the end of the tunnel, um, in terms of the AOS, because this has been a material headwind onto that blue, and I do believe that when the macro environment continues to.

Marty St. George: If I could just add on the pilot question. We have a sufficient number of crew. We've been managing the challenges with AOG through a series of voluntary programs across both our pilots and our in-flight and our airports. And so the benefit of a voluntary program is that because we knew the AOG issue was transient in nature, we will be able to sort of adjust our staffing levels appropriately as these aircraft come back into service. Yeah, very good.

Improved that this will be a Tailwind for us.

If I can just add a pilot question, we we have a sufficient number of groups. Um we've been managing um the challenges with AOG through a series of voluntary programs um across both our pilots and our insights and our airports. And so the benefit of the voluntary program is that um because we knew the AOG issue was transient in nature, um we will be able to sort of adjust. Um, our staffing levels appropriately, as these aircraft come back into service.

Marty St. George: Marty, if I could go to JetBlue's 51 partners. I remember when JetBlue first began adding partners, the stat you would share with us all was that, you know, these partnerships were filling the equivalent of two to three planes per day. And it's funny, where is that stat today?

Marty St. George: And then related to that, you know, is there less international inbound today that you would expect to come back in 2026 and 2027? And, you know, roughly how many percentage points of RASM can that increased connectivity typically drive? Okay, wow, a lot of questions at the end, thanks.

Yeah, very good. Um, Marty if I could go to JetBlue's 51 Partners. I remember when JetBlue first began adding Partners the stat you would share with us all was that you know, these Partnerships were filling the equivalent of of equivalent of of 2 to 3 planes per day. I'm just wondering. Where is that stat today? And then related to that you know, is there less International inbound today that you would expect to come back in 2026 and 27 and you know, roughly how many percentage points of rasim can that increase connectivity typically Drive?

Marty St. George: Let me start with this. We have 51 partners today, and we feed in multiple focus cities, and we're really happy with the partner portfolio that we have. Obviously, the United partnership is going to be very, very important to us, and we're really excited about adding United into the portfolio, not just from a perspective of feed, but also what it's going to do for True Blue, what it does for Paisley, etc. So I see a lot of upside as far as how that goes. And Tony, I remember also the comments about it fills one airplane, two airplanes, and I think that was back when there was a lot of skepticism about low-cost airlines doing partnerships.

Okay, well one of the questions then, thanks. Um, let me start with this. Um,

Marty St. George: Now, it seems like everybody's talking about partnerships, including ultra-low cost carriers. So I think we sort of don't even look at that anymore, because our view is this is the answer, and we've proven that partnerships are very effective for us. The thing we have going for us is that if you're an international airline that wants access into the interior of the country, and you're not a member of SkyTeam, obviously, because you've got that one SkyTeam airline with a very good operation in New York and Boston, your best way to get access into the interior of the U.S.

We have 51 Packers today. And, you know, we're, we, we feed in multiple Focus cities and we're really happy with the patent portfolio that we have obviously, the United partnership is going to be very, very important to us. And we're really excited about adding united into the portfolio. Uh, not just from a perspective of feed but also what it's going to do for True Blue, what it does for Paisley, Etc. So I see a lot of upside on as far as how that goes. It's only, I remember also the comments about, you know what trills, 1 airplane 2 airplanes and I think that was back when there was a lot of skepticism about low cost Airlines doing Partnerships now, it seems like everybody's talking about Partnerships including ultra low cost carriers. So I think we sort of don't even look at that way anymore because, you know, our viewers this is asked and answered. And we proved in the Partnerships that very very, uh, effective for us. As I think we have going for us. Is that if you're an International Airline that wants, access into the interior of the country and you're not a member of Sky Team obviously, because you've got you know, that once Sky Team airline with a Sky Team airline with a very good operation in New York and

Marty St. George: is JetBlue. And I think a lot of our partnerships, a lot of partners and partnerships are tied to that presence we have in this marketplace. I will also say, not just adding United to the mix, but we're looking forward to working with Star Alliance partners, who we think will also appreciate the ability to get connectivity into the east through New York and Boston.

Marty St. George: But overall, I feel like there's so many things with the JetBlue model. And again, I came here in 2006 for the first time. So many things about the JetBlue model that people questioned when we first did them that are now basically accepted as normal course of business for low-cost airlines. And I think it's just another example. I feel very proud of the partnerships we've done. We love working with the partners that we do, and I see a lot of upside going forward. Yeah, that's perfect.

For working with guidelines Partners. Uh who we think will also appreciate the ability to get connectivity into uh, the East through through New York and Boston. But overall, uh, you know, I feel like there's so many things about the JetBlue model. And again, I I came here in 2006 for the first time.

So many things about the JetBlue model that people questioned when we first did them that it now basically accepted as normal course of business for low cost Airlines and I think it's just another example. I we're very proud of the Partnerships we've done. Uh we love working with the partners that we do and I see a lot of upside going forward.

Marty St. George: Thanks, Marty.

Yeah, that's perfect. Thanks Marty.

Tom Fitzgerald: And our next question comes from the line of Tom Fitzgerald with TD Cowan. Your line is open. Hi, thanks so much for the time.

And our next question comes from the line of Tom Fitzgerald with TD Cowen. Your line is open.

Tom Fitzgerald: I'm just kind of curious, just looking at the different buckets for JetForward, the four priorities, are you able to provide any color about how, you know, as you go from the 180 to the 290, which are the four buckets, what you expect the contributions to be? Yeah, I can take that. I think in general, it's kind of spread evenly across the four the four buckets. I think if you think about the back half of the year, network ramping continues to be a meaningful driver. Most of the changes we made to the network were last Q3 last year, and they're nicely in ramp, but we've got a ways to go.

Hi, thanks so much for the time. Um, I'm just kind of curious, just looking at the, um, the different buckets for jet for the 4 priority is, are you able to provide any color about how um, you know, as you go from the 180 to the 2990 which of the 4 buckets? What you expect the contributions to be?

Marty St. George: So, you know, pleased with the progress. You know, as we mentioned, we've realized 180 of EBIT cumulatively, 90 million in 1H, we'll see another 110 through the year end for a total of 290 by the end of this year, and we have very clear proof points across each one of the priority moves that JetForward is working.

Yeah, I can take that. I think in general, it's kind of spread evenly across the 4, the 4 buckets. I think as you think about the back half of the Year Network, ramping continues to be a meaningful driver. Um, the most of the changes we made to the network were last, um 2 3 last year and they're nicely in ramp. Um but we've got got a ways to go. So you know, pleased with the progress. Um, you know, as we mentioned we've realized 180

Tom Fitzgerald: You know, but it is a multi-year plan, and it's going to take some time to realize the full benefits of it. Okay, great. Thanks. That's really helpful.

I believe it cumulatively 90 million in 1. Each, we'll see another 110 through the year end for a total of 290, um, by the end of this year, um, and we have very clear proof points across each 1 of the priority moves that jet forward is working. Um, you know, but it is a multi-year plan and it's going to take some time to realize the full, the full benefits of it.

Tom Fitzgerald: And then just as a follow up, I'm just wondering if you mind providing any more color on Just kind of customer trends like by the different segments over the course of 2Q and then just quarter to date what you have kind of on the books, whether by Core Leisure, VFR, True Blue, Loyalty Members, Corporate. Thanks again. Hey, Tom, I'll take that one. Thanks for the question. As far as what we're seeing, a lot of what we're seeing is similar to what we've heard from other airlines in their calls, definitely doing better for international than domestic, definitely doing better for premium versus the, you know, the basic type customers.

Okay, great. Thanks, that's really helpful. And then this is a follow-up. I'm just wondering if you mind providing any more color on. Um,

Just kind of customer trends, like by the different segments over the course of Q2 and then just quarter to date, want you to have kind of on the books, whether by kind of core leisure, VFR, you know, true blue, loyalty members, corporates. Thanks again.

Marty St. George: So I think we're sort of consistent in what we're seeing. You know, we continue to see good numbers with True Blue, and we talked about some of the numbers as far as the growth of the credit card, our remuneration, I think overall the trends are actually good. I think the most important trend, and it's one that I give all the credit to our crew members for, is our Net Promoter Score. You know, the last report we had done for Net Promoter Score, we were at the top of the industry for NPS, and frankly, we've come a long way in the last three years.

Marty St. George: So from that perspective, I sort of look at that as sort of the straw that stirs the drink, so to speak, if we can use the baseball analogy, because without a great customer experience, we can get these customers on board once, but they may not come back. But I have great gratitude for our crew members providing just amazing service so that the customers who do fly JetBlue are really happy and hopefully come back. And frankly, I'm looking forward to having our partnership customers, whether United or Lufthansa, whoever ends up being a partner, come to fly JetBlue, because again, I feel like once you try us once, you'll recognize how much better JetBlue is, and we very much appreciate the JetBlue experience and look for us in the future.

Hey, Tom, I'll take that 1. Um, thanks for the question. Uh, as far as what we're seeing, a lot of what we're seeing is similar to what we've heard from other airlines in their calls, uh, definitely doing better for international than domestic definitely doing better for Premium versus, uh, the, you know, the basic, uh, type customers. So, I think we're sort of consistent with what we're seeing. Uh, you know, we continue to see good numbers with true blue. And, you know, we talked about some of the numbers, uh, as far as the growth of the credit card, uh, our remuneration, I think, overall the trends are actually good. I think the most important strategy that's 1 that I give all the credit to our crew members for is our net promoter score. Uh, you know, the last report we had done for net promoter score. We were at the top of the industry for NPS, um, and frankly we've come a long way.

3 years, so it's not perspective. Uh, I sort of look at that as

sort of the strongest. There's a drink so to speak. If we can use the baseball analogy, uh, because without a great customer experience, we can get these customers on board once but they may not come back. But I, I have great gratitude for our crew members providing just amazing Service. Uh, so that the customers who do fly, JetBlue are really happy and, and hopefully come back and frankly, I'm looking forward to having, uh, you know, our partnership customers whether United or luanza, whoever ends up, being a partner, come to fly JetBlue because again, I feel like once you try us once you'll recognize that, how much better Jeff blue is and, you know, you very much, appreciate the Jeff experience and look for us in the future.

Marty St. George: I should mention, you asked about business customers, in general, you know, year over year, we've taken a pretty big hit to our business customer network because we've closed a lot of their business routes we flew at LaGuardia. Notwithstanding, our business revenue is basically flat year over year for the quarter, so I actually see that as a very good sign.

Uh, I should have mentioned you you asked about business customers? Uh, in general, you know, we have year over year, we've taken a pretty big hit to our business, customer Network, because we closed a lot of the business routes. We flew at LaGuardia, notwithstanding our business re is basically flat core or so a year for for the quarter. So like she said as a very good sign,

Jamie Baker: And our next question comes from the line of Jamie Baker with J.P. Morgan. Your line is open.

And our next question comes from the line of Jamie Baker with JP Morgan. Your line is open.

Hey, good morning everybody. So, Maria, the question on JetBlue: do you have a view on where they fly with their 7 daily frequencies? I mean, you know, I'm assuming it's transcon, you know, as opposed to, I don't know, flying to Dallas or something like that from JFK. So, if it is transcon flying, have you...

Joanna Geraghty: Hey Jamie, thanks, it's Joanna, I'll take that. So as you know, it would be illegal for us to discuss with our partner where they may intend to fly the JFK slots, so we have not had those conversations, nor do we intend to. You know, obviously we've made certain assumptions in our model as to what the impact of United flying those slots may be, and that is included in the value of the overall deal. There's obviously a series of puts and takes. You know, United was obviously interested in the slots, and there is an impact to JetBlue if they operate those slots through a variety of different markets.

For that increased competition. As part of your overall Blue Sky estimate.

Joanna Geraghty: At the same time, selling the JetBlue network over United.com has a very important revenue benefit for JetBlue. Likewise, the utility of the TrueBlue program in giving our customers global access. And as you know, we sort of focused our own network on trying to drive scale in the Northeast. This is about trying to give scale to our customers, to a global network. And then Paisley is sort of the real upside here in terms of the unique opportunity for us to basically provide a white-label platform for United to sell its non-air ancillaries in the future.

Joanna Geraghty: Okay, perfect. Thanks for the clarification.

Marty St. George: And then maybe, Marty, this is one for you. And maybe it's too early to ask this question, but you know, you're obviously aware that certain struggling discounters are trying to lean into premium. I mean, it's more of a legroom exercise, really, but in any case, in overlap markets, have any of those new products that have begun being sold by your competitors having any impact on your results? Hey, Jamie, great question. And I will tell you, we have seen no impact whatsoever from any of these so-called premium products that are competing against us. I think if you look at, you know, our 15 years of experience, actually 20 years of experience, including even more legroom of premium products, you know, we have great, great credibility with our customers, that we can offer great, great premium products.

Line. Those slots may be, um, and that is included in the value of the, um, of the overall, um, overall of the overall deal, there's obviously a series of puts and takes, you know, United was obviously interested in the slots and there is an impact to JetBlue. If they operate those slots to a variety of different markets at the same time, um selling the JetBlue network over united.com has a very um, important Revenue benefit for JetBlue likewise utility of the true blue program and giving our customers Global access, you know, as you know we sort of focused our own network on trying to drive scale in the Northeast. This is about trying to give scale to our customers to a Global Network. And then Paisley, um, is sort of the real, the real upside here, uh, in terms of the unique, um, opportunity for us to basically provide a white label platform for United to sell its non-air ancillaries um, uh in the future. Okay, perfect. Thanks for the clarification. And and then maybe Marty this is 1 for you and maybe it's 2.

Too early to ask this question, but you know, you're obviously aware that certain struggling Discounters are trying to lean into premium. I mean, it's more of a legroom exercise. Really. But um, in any case in overlap markets,

Have any of those new products that have begun being sold by competitors had any impact on your results?

Marty St. George: And, you know, I feel like you can try to do that in a ULCC environment, but I really don't feel like it's kind of come close to what we've been offering for 20 years. So from that perspective, you know, I think I'll paraphrase Harry Truman, when the customer is choosing between a real premium product and a fake premium product, the real one's going to win. And fundamentally, that's what we're seeing right now. And, you know, if you look at, you know, we just we just went through a recent announcement of some growth in Fort Lauderdale, where our biggest competitors are ULCC.

Marty St. George: And frankly, I feel like that is a example of how well we are doing in that market. I mean, we really are the only non-ULCC option in Fort Lauderdale, and we're very competitive with, you know, with the hub airport down the, you know, a couple miles down the beach. But even with all that, I think it's also worth mentioning, and bringing us back to JetForward, you know, we continue to evolve our premium products, you know, we've relaunched even more with enhanced customer experience. And like, most importantly, we've announced a domestic first class product that's coming out next year.

Hey Jamie great question. And I will tell you, we have seen no impact whatsoever from any of these so-called premium products uh that are competing against us. I think if you look at, you know, our 15 years experience, actually 20 years of experience including even more leg room, uh, a premium products, you know, we have great, great credibility with our customers that we can offer. Great, great premium products and, you know, I feel like you can try to do that in a ulcc environment, but I really don't feel like it's kind of come close to what we've been offering for 20 years. So if that perspective, you know, I think I'll I'll I'll paraphrase Harry Truman uh, when the customers choose between a real premium product and a fake premium product. The real 1 is going to win, uh, and fundamentally. That's what we're seeing right now. And and, you know, if you look at, you know, we just we just went through a recent uh, announcement of some growth in in, Fort Lauderdale where our biggest competitors at ulcc. And frankly, I feel like that is a example of how well we are doing in that market. I mean we really are the only non ulc

Option in Fort Lauderdale and we're very competitive with, um, you know, with the hub airport down the, you know, a couple miles down the beach. But even with all that, I think it's also worth mentioning and bring us back to Jeff forward, you know, we continue to evolve our premium products, you know, we, we, we relaunched even more, um, with, with enhanced, uh, customer experience. And like most

Marty St. George: So even as well as we've done in premium, and as well as the revenues also have been, you know, we're not resting on our laurels, we'll continue to do more exciting products. We could not be more excited about the domestic first class product. And frankly, I think our timing is great for it, because we're really seeing that, you know, I keep using the phrase the Bob Bell, you know, we get the Bob Bell of, you know, a lot of demand at the top of the demand curve.

Marty St. George: Thanks, I appreciate that. It actually was some of those Fort Lauderdale ads that you announced that actually got me wondering about it. And I obviously share your skepticism. So thank you for your answer.

Marty St. George: Both of you, take care. Well, again, your opinion and my opinion don't matter. It's the customers and the customers are voting with their feet, luckily. Jamie's maybe a customer sometimes. I hope so, yeah.

Marty St. George: It's just refreshing for me to agree with the management on any big meeting days it seems. So yeah, I was just pointing it out. We might let you into the lounge. Maybe we'll let you into the lounge, JM Tech.

Support. And we announced a domestic first class first class product that's coming out next year. So even as well as we've done in premium and as well as a revenue is also been, uh, you know, we're not risking our Laurels, we'll continue to do more exciting products. We could not be more excited about the domestic first class product. And frankly, I think our timing, uh, is great for it because we're really seeing that, you know, I keep using the phrase, the barbell, you know, we get the Bob Bell of, you know, a lot of advantage to the bottom and a lot of demand at the top, and we are really well positioned to take to capture that demand at the top of the, uh, the top of the, um, demand curve. Thanks. I appreciate that. It actually was some of those 4 Lauderdale ads that you announced that actually got me wondering about it and, um, I obviously share your skepticism. Um, so thanks for your answer. Both of you take care. Well, again, I I, you're you're saying, you, in my opinion, don't matter. It's the customers and the customer with they voting with their feet. Luckily, she needs maybe a customer sometime. I hope so. Yeah. It's just refreshing for me to agree with a manager on anything these days. It seems

So yeah, that was disappointing. Yeah, I might let you into the

Marty St. George: Thanks, guys.

Let you into the lounge of JFK. Sorry, thanks guys.

Thanks.

Savanthi Prelis: And our next question comes from the line of Savvy Sipes with Raymond James. Your line is open. Hey, good morning, everyone.

And our next question comes from the line of Savvy. 5 with Raymond James. Your line is open.

Savanthi Prelis: If I might follow up on Dan's earlier question on the capacity growth in 2026, a little bit more, just how much of that growth is coming from reversals of AOG? And even in 2027, I'm just trying to get a sense of just how much of the, at least the very near-term growth in the next couple of years might be highly efficient from a cost perspective. Yeah, thanks for the question, Savi. I mean, the majority of the projected growth is driven by the improvements in AOGs. I mean, if you take a step back, our original guidance for this year was that we have mid to high teens number of aircraft on the ground, and we're now trending, you know, lower than 10 on average for the full year.

Hey, good morning everyone. Um, if I might follow up on uh Dan's earlier question on on the capacity growth uh in 2026, a little bit more just

How much of that growth is coming from reversals of AOG. And even in 2027, I'm just trying to get a sense of just, how much of the, at least, the very near-term growth in the next couple of years, might be highly efficient from a cost perspective.

Ursula Hurley: We believe that this year is the peak, so as we navigate through 2026, you know, that that will come down over time. I think, you know, one of the major benefits here is gaining some efficiency on the unit cost growth trajectory. Obviously, we've been pressured in not being able to grow over the last two years, and so this should give us a level of efficiency on the cost side of the equation. So again, you know, I'm hopeful that the macro backdrop is going to continue to improve, and when that does, this is going to be a tailwind trust, not only on the growth side, the cost side, but just from a true profitability perspective.

Ursula Hurley: Appreciate that Ursula.

As we navigate through 2026, um, you know, that, that will come down over time and, and be complete by the end of 2027. I, I think, you know, 1 of the major benefits here is, um, gaining some efficiency on on the unit cost growth trajectory, um, obviously we've been pressured and not being able to grow, oh, over the last 2 years. And so this should give us, um, a level of efficiency, um, on the cost side of the equation. So, um, again, you know, I, I'm hopeful that the macro backdrop is going to continue to improve. Um, and when that does, um, this is going to be a Tailwind for us. Not not only on the growth side, the clock side, but just from a, a true profitability perspective,

Marty St. George: And if I might, I wonder if you could, I don't know if this is a question for Marty, perhaps, like, just talk a little bit about what you're seeing on the competitive landscape, and if like this current environment is causing any kind of change of behavior among any of your competitors. That's a good question. Honestly, I would not call it anything unusual in the competitive landscape right now. The one thing that I would say is we're obviously watching very closely the pulldowns we're seeing in the ULCC world, and we've reacted to that with some of the growth reporting recently.

appreciate that. There's a lot. Um, and if I might, I, I wonder if you could, um, I don't know if this, uh, question from Marty. Perhaps, like, just talk a little bit about what you're seeing on the competitive landscape and if like this car and environment is, is causing any kind of change of behavior and and among any of your competitors

Marty St. George: I think another thing that is important to be on the what the likely trajectory is going to be of capacity for the industry, because I think we're still not exactly clear what the rest of the year is going to look like as far as growth rate. And that's obviously going to be very important as far as understanding what we should be expecting for the rest of the year. But overall, I'm not looking at any significantly sort of noteworthy changes in behavior that I would call out.

Um, that's a great question, right? I mean, honestly, I don't think it was I I I would not call it anything unusual in the competitive landscape right now. Uh, you know, the 1 thing that I would say is obviously, watching very closely, the pull Downs, we're seeing in the CC world and we've reacted to that, with some of the growth reported in recently. Uh, I think another thing that is important to be on the list is just trying to understand what the, um,

Joanna Geraghty: I don't know, Joanna, if you see something like that. I think we're, you know, we're focused on the changes that we were putting forward in the original Jet Forward plan, all the network changes that we went through, and we're really sort of heads down on that right now.

Marty St. George: Sounds. Thank you.

What the likelihood trajectory is going to be of capacity for the industry because uh I think we're still not exactly clear what the rest of the year is going to look like as far as growth rate and that's obviously going to be very important to try to understand what what you'd expect in, uh, for the rest of the year. But overall, I I'm not looking at any significantly, uh, any sort of noteworthy change in behavior that I would call up. I'm not doing if you see something like that. But now we're I think we're, I think we're, you know, we're, we're focused on the changes. We, you know, that we're that we will, uh, putting forward and and, uh, they would plan, you know, all the network changes that we went through. And that's, we're really sort of heads down on that right now.

Makes sense. Thank you.

Mike Linenberg: And our next question comes from the line of Mike Linenberg with Deutsche Bank. Your line is open. Good morning, everyone. I want to go back to your comment just about this higher mix of close in bookings, this acceleration. Is this Temporary, is this structural? I sort of think as JetBlue rolls out a first-class product next year, I mean, you're probably gonna get, you're gonna rebuild your share of corporate. I mean, are we on to something here?

And our next question comes from the line of Mike linenberg with Deutsche Bank. Your line is open.

Good morning, everyone. I want to go back to your comment about this higher mix of close-in bookings. This acceleration is...

Joanna Geraghty: Hi, Mike, great question. And trust me, it's a question we ask ourselves every single day we look at the booking report, at least since we started to see the strength. I don't think any of us are ready to call this to be a permanent change. And it's one of the reasons why we're relatively cautious as far as our guidance. I do think, based on the research that we've done, I do believe a big chunk of it is just consumer sentiment and customers being cautious because of bigger uncertainty with all the stuff going on with, you know, tariffs, and who knows what else?

Temporary. Is this is this structural, I sort of think is JetBlue rolls out of first class product next year. I mean, you're probably going to get you're going to rebuild your share of corporate. I mean, are we, are we on to something here?

Uh, hi, Mike, great question. And trust me, it's a question, we ask ourselves every single day. We look at the booking report at least, since we started to see this strength, uh, I don't think any of us are ready to call this, to be a permanent change, uh, and it's 1 of the reasons why we're relatively cautious as far as our guidance. Um, I do think based on the research that we've done. I I do believe a big

Joanna Geraghty: I'm not sure I understand the core drivers of it, but it certainly has the feeling of the, I'm going to wait a while before I make my booking. I think the reason I mention that is because we really didn't see it in April much to any measure. It really was, I would say, middle of May when we started to see Memorial Day bookings pick up. We had a fantastic Memorial Day, much better than forecast, and that really carried into June. But it does have the feeling of people just waited a long time to make the final decisions, and then when they decided, they made their bookings.

Joanna Geraghty: But I would not call this something that we're expecting to be a permanent fixture of a change for the booking pattern.

Mike Linenberg: Okay, great.

Mike Linenberg: And then just my second, I know, I think, Joanna, you called out, you know, the $50 million sort of incremental EBIT because of the United partnership. What was the placeholder amount that you had for partnerships in the original JetForward plan? Just trying to get a total size of the United contribution. Thank you. Yeah, thanks, Mike. Yeah, we haven't broken out the total amount. As we've said before, in JetForward, there's a number of puts and takes that we're only focused on the contribution of each of the priority moves as a whole. So the $50 million incremental EBIT, that's largely associated with the benefits from Paisley as part of the United partnership, but we haven't broken it out.

Big chunk of it is just um, consumer sentiment and customers being cautious because of bigger uncertainty with all the stuff going on with, you know, tariffs and who knows what other stuff. Uh, I'm not sure I understand the core drivers of it, but it certainly has the feeling of the. I'm going to wait a while before I make my booking. Uh, I think the reason I mentioned that is because we really didn't see it in in April much much. And and to any measure, uh, it really was, I would say middle of May. When we started seeing Memorial Day, big bookings, pick up. We had a fantastic Memorial Day. Much better than forecasts and that really carried into June, but it does have the feeling of people just waiting a long time to make the final decisions and then when they decided they decided that, you know, they they they they made their bookings but I don't I would not call this something that we're expected to be a permanent uh fixture of a change for uh the booking patterns

Okay, great. And then just my second, um, I know, I think Jenny you called out, you know, the 50 million sort of incremental ebit, um, because of the United partnership. What was the, um, what was the placeholder amount that you had for Partnerships in the original kit forward plan? Just trying to get a total size of the United contribution. Thank you. Yes, thank you.

Joanna Geraghty: You should expect a full run rate of 2028 for Blue Sky. It takes some time to implement it and it will be staged with benefits coming, you know, over the course of the next couple of years.

Mike Linenberg: Okay, great. Thank you.

Thanks Mike. Yeah, we haven't broken out the total amount. Um as we've said before in jet 4 there's a number of puts and takes that were only focused on kind of the contribution of each of the priority moves as a whole. Um, so the 50 million incremental ebit, um, that's largely associated with the benefits from Paisley as part of the United partnership, um, but we haven't broken it out. You should expect kind of full run rate, um, 2028 for, um, for Blue Sky. It takes some time, uh, to implement it, um, and it will be stayed with Benefits coming, you know, over the course of the next couple of years.

Okay, great. Thank you.

Katherine O'Brien: And our next question comes from the line of Katherine O'Brien with Goldman Sachs. Your line is open. Good morning, everyone. Thanks for the time. Marty, maybe just one more on the revenue environment. Can you just talk about RASM between the months of the second quarter? And then what's underlying the monthly progression for the third quarter guide? Anything you can provide on book yields or loads? And with bookings fairly close in, as you've been talking about, how are you going about your September forecast?

Your line is open.

Marty St. George: Hi, Katie. Thanks for the questions. Good questions too. As far as the progression, I think we really saw an acceleration. We don't generally give a lot of monthly feedback, but I'll just give a little bit right now. We really saw progression sort of Memorial Day forward, and it was pretty hefty progression. I mean, as you saw, we had a pretty big beat for the second quarter. I think if you asked us that question on April 30th, no one would have predicted a beat like that. But really, when we got to the middle of May, we really started to see things turn on and continue.

Hey, good morning everyone, thanks for the time. Um Marty maybe just 1 more on on the revenue environment. Can you just talk about rasim between the months of the second quarter and and then what's underlying the monthly progression for the third quarter guide? Anything you can provide on you know, book yields or loads and and with bookings Fair fairly close in as you've been talking about. You know, how are you going about your September forecast? Thanks.

Marty St. George: And that has been continuing through June, July, and August. And I think the real issue is that this is one of the only prolonged peak periods of the county year. And one of the things that every airline has been calling out, including some of the biggest of the legacies, is that there's this pretty significant difference between peak and trough demand. Now, clearly, we still have troughs. Our load factor will be down in third quarter versus third quarter 2024. And the troughs are weaker than the peaks. But in general, this is a period of really good peak demand.

Hi Katie, thanks for the questions. Uh, good questions, too. Um, as far as the progression, I I think we really saw an accelerate. We we don't generally give a lot of monthly feedback, but I'll just give a little bit right now. Uh, we really stopped progression sort of Memorial Day forward. And it was, it was pretty hefty progression. I mean, as you saw, we had a pretty big beat for the second quarter. Uh, I think if you'd asked the second question on April 30th, November the beat like that. But really, when we got to the, the middle of may, we really started to see things turn on and continue. Um, and that has been continuing through July and August. And excuse me, June, July and August, and I think the real issue is that, you know, this is 1 of the only prolonged Peak periods of the, um, uh, uh, of the of the calendar year. And, you know, 1 of the things that every Airlines have been calling out, including some of the biggest sort of legacies is that there's a pretty significant difference between Peak and trough demand now. Clearly, we still have troughs. Our road tractor will be down in the third quarter versus third quarter 2024 uh and the troughs are weaker than the peak.

Marty St. George: Specifically with September, we've done a lot of self-help in September as far as pulling down ASMs. We've pulled a lot of off-peak capacity, and again, thanks to some of the programs that Joanna mentioned with respect to, you know, voluntary leaves. You know, we're doing the best we can to control our costs during September. And frankly, I think the fact that, you know, we continue to meet our cost guide, and we have met it for six or seven quarters, I think seven quarters consecutively, even in light of all these changes, just shows how well we are doing as far as managing our costs, even with relatively close to schedule.

But in general, this is a period of really good Peak demand.

specifically with September, um,

Marty St. George: So, I look at this and I feel like we will be well set up for the third quarter guide that we laid out. As of right now, I think with the work we've done since September, September actually has the highest year-over-year resume increase of the three months in the third quarter. So I think it just shows how well we've managed September through capacity, so actually very positive about that.

I I we've done a lot of self-help in September as far as pulling down asms, we've pulled a lot of off peak, um, capacity. And again, thanks to the, you know, the the some of the programs that you wanna mentioned with respect to uh, you know, voluntary leaves. You know, we're doing the best we can to control our costs, uh, during September. And frankly, I think the fact that, you know, we continue to meet our cost guide and we have met for 7 and 6 or 7 quarters. I think 7 quarters consecutively even in the light of all these changes, just shows how well we are doing as far as managing our costs even with relatively close and scheduled changes. So I look at this and I feel like we will be uh well set up for the third quarter guide that we laid out. Uh as of right now, I think with the work we've done in September. Um

September actually has the highest year-over-year resume uh increase of the 3 months and the third quarter. So I think it just shows how well we've managed September uh through capacity. So they're actually very positive about that.

Marty St. George: Great, thanks for all that color, Marty.

Ursula Hurley: Maybe one for you, Ursula. With all the fleet updates driving low single-digit growth through the end of the decade, how should we be thinking about your historical comments on, you know, low single-digit growth driving mid-single-digit CASMX? Should that be better over the next couple of years as JetForward initiatives ramp up?

Ursula Hurley: Yeah, thanks for the question. Yeah, previously, we've highlighted, you know, mid-to-high single-digit growth will result in a flattish chasm exfuel. So, you know, if you just triangulate low single-digit growth rate, obviously, the unit cost performance will be higher than the sladdish. You know, I'm extremely pleased with the cost performance that the team has been executing to. I mean, at the highest level, you know, we've maintained the unit cost growth guide that we gave last in January, despite, you know, pulling capacity, you know, over one and a half points. So, we're finding ways to take costs out of the business.

Uh, that's great, thanks for all that color. Marty. Um, maybe 1 for you or the um, with all the fleet updates, driving low single digit growth through the end of the decade, how should we be thinking? How should we be thinking about your historical comments on, you know, low single digit growth driving mid single-digit? Chasm acts should that be better over the next couple of years as Jeff for initial Grant. Thanks.

Ursula Hurley: Some of these decisions have not been easy, you know, between divesting, you know, the JetBlue tech ventures assets, as well as, you know, additional budget targets and going through, you know, a corporate headcount support center review. Like, these are tough decisions, but, you know, we need to continue to deliver on cost.

Yeah, thanks for the question. Yeah, previously we we've highlighted you know, mid to high single-digit growth will result in a flattish chasmic fuel. So, um, you know, if you just triangulate low single digit growth rate, um, obviously the unit cost performance, um, will be, um, higher than Scottish. Um, you know, I I'm extremely, um, pleased with the cost performance that the team has been executing to, uh, I mean, at the highest level, you know, we've maintained the unit cost growth guy that we gave last in January, despite, you know, pulling capacity, you know, over 1 and a half points. So we're, we're finding ways um, to take costs out of the business and some of these decisions have not been easy. Um, you know, between digesting, you know, the JetBlue Tech Ventures, um, assets as well as you know, additional budget targets and going through, you know, a corporate headcount support center, you review like you.

Ursula Hurley: We've executed for seven quarters in a row, and I do think the AOG Outlook will provide us the improvements that we're seeing here on the AOG Outlook will provide us further efficiencies as we build the unit cost growth target for 2026 and beyond.

Either tough decisions but um, you know we we need to continue to deliver on costs. We we've executed for 7 quarters in a row and and I do think the AOG Outlook will will provide us the improvements that we're seeing here. Um, on the AOG Outlook, we'll provide us further efficiencies. Um, as we build the unit cost growth Target for 2026 and Beyond.

Duane Pfennigwerth: And our next question comes from the line of Duane Pfennigwerth with Evercore ISI. Your line is open. Hey, thanks. Good morning.

And our next question comes from the line of Dwayne thenorth with evercore isi. Your line is open.

Marty St. George: Just on the travel products business or Paisley business, can you expand on on how you kind of generate a margin in that business on your own bundle? You know, what shape does that take? Is it is it commission based? Is it kind of a third party clearing house? Do you have negotiated agreements on on room inventory? And then maybe you could contrast, again, high level broad strokes, you know, the margin you make on one of your own customers versus the margin you'd make on a third party airline customer like United.

Hey, thanks. Good morning. Um, just on the, um, travel products, business or Paisley business.

Can you expand on how you kind of generate a margin in that business on your own bundle? You know, what shape does that take? Is it commission-based?

Marty St. George: Hi, Duane. Thanks for the question. Great question, by the way. And I love talking about Paisley because, A, it's been a fantastic product for us and a great product for our customers. And B, as you saw from our guide up for JetForward, it's going to be an important part of our recovery program going forward and an important part of Blue Sky. So as far as how the math works, it's actually very simple. Just as a reminder, for those who don't understand what we do through Paisley, it's selling all of our non-air ancillary products. So that includes hotel packages under JetBlue Vacations brand.

Contrast, uh, again, high-level broad strokes, you know, the margin you make on one of your own customers, uh, versus the margin you make on a third-party airline customer like United.

Marty St. George: It includes standalone rental cars at hotels. It includes travel insurance. It includes cruises. We actually have theme park tickets, all sorts of things that customers use that are tied to flight booking. Interestingly enough, we see customers who will book on Paisley who are not tied to flight booking. You know, we've sold cruises originating in Asia, for example, because they like the prices that we have and the ability to enter through Bluepoints. So Paisley has actually been great for our customers. We basically earn on commissions. So we get commissions from the hotels, from the rental car company, insurance, etc.

Hey Dwayne, uh, thanks for the question. Great question, by the way, and I love talking about Paisley because a, it's been a fantastic product for us and a great product for our customers. And be, as you saw from our guys up for for check forward, it's going to be important part of our recovery program, going forward and important part of blue sky. So, as far as how the math works, it's actually very simple. Uh, just as a reminder, for those who don't understand what we do through Paisley, um, it selling all of our non-air products so that includes, you know, hotel packages under a jet blue vacations. Brand it includes Standalone, replicas and hotels. That includes travel insurance includes cruises. We actually have like theme park tickets. Like all sorts of things that customers use that are tied to a flight booking.

Marty St. George: We've negotiated. We don't release the exact number, but, you know, we're in the four digits of the number of hotels with whom we have contracts, in addition to a great exclusive deal right now with Avis for rental cars. And, you know, overall, it's been a great profit generator for us. The EBIT margin for Paisley is in the 50s and climbing to the 60s. It's also a very low capital business. The only capital we spend is basically a little bit of IT CapEx. And frankly, what we're most excited about is that we can scale this product up with the addition of access to United Customers.

Interesting enough, we see customers who will book on Paisley, who are not tied with flight booking. You know, we've sold cruises originating in Asia, for example, uh, because they like the prices that we have and the ability to enter through Blue Points. So, Paisley is actually been great for our customers. We basically earned on, um, commissions. So we get commissions from the hotels, from the, uh, rental car company, insurance, Etc. Uh, We've negotiated, uh, we don't really see exact number but, you know, we're in the 4th of the number hotels with whom we have contracts. Uh, in addition to a great exclusive deal right now,

Marty St. George: And the way we describe it is basically it's a leads business. You know, we bring them 40 million leads. The airline brings 40 million leads a year into Paisley. And now we're going to add, you know, nine digits of leads from United Customers. We don't actually know what United's margins are for their current relationships because that's not something that we would share. But when you look at what we're producing and what we believe we can produce for United, they made the independent decision that we would do a better job of generating profit for them than their current partners.

Marty St. George: We are splitting the commissions. We're not releasing that split publicly. So, unfortunately, I can't give you that amount of detail. But we're really excited about it. I know this is something that we are extremely good at.

With Avis for rental cars. Um, and you know, overall it's been a great profit generator for us. The ebit margin for Paisley is in the 50s, uh, and climbing into the 60s. Uh, it's also a very low Capital business. The only Capital we spend is basically a little bit of, um, of it capex. Uh, and frankly, what we're most excited about is that, um, we can scale this product up with the addition of access to United customers and the way we describe it is basically it's a Leeds business. Uh you know, we bring them 40 million need, excuse me, the airline brings 40 million leads a year into Paisley and now we're going to add, you know, 9 digits of leads from United customers. Uh, we don't actually know what United's managers are for their current relationships, because that's not something that we would share. But, uh, when you look at what we're producing and what we believe we can produce for United, they made the independent decision that we would do a better job of, um, generating, uh, profit for them, than their current Partners. Um, we are splitting the

Marty St. George: We have a group of people who are red ringed from JetBlue, you know, separate IT systems, separate everything. They're in Fort Lauderdale. They're not in New York. And this has really been set up to be a label for multiple brands. We are talking to additional airlines over and above United. In fact, we're talking to some non-airlines. This group is very, very good at their job. And we're really excited about its ability to contribute to our profitability going forward. Okay, appreciate the thoughts, Marty.

Commissions, we we're not releasing that split publicly. So unfortunately, I can't give you that amount of, uh, detail, but we're really excited about it. I know this is something that, uh, we are extremely good at. We have a, uh, a group of people who are red ring from JetBlue, you know, separate it systems separate everything, they're in for a lot of they are not in New York, uh, and this is really been set up to be a white label for multiple Brands. Uh, we are talking to additional Airlines over and above United. Uh, in fact, we're talking to some non Airlines. Uh, this group is very, very good.

Go to the same job, and we're really excited about its ability to contribute to our profitability going forward.

Okay, appreciate the thoughts. Marty

Atul Maheswari: And our next question comes from the line of Atul Maheswari with UBS. Your line is open. Good morning. Thanks a lot for taking my question. On fourth quarter, I know you're not providing RASM guidance yet, but assuming demand stays at current levels. Should RASM improve versus the third quarter on a year-over-year basis, so fourth quarter year-over-year versus third quarter year-over-year? Does that improve in the fourth quarter if demand stays at current levels, or does it take a step back given you lapsed some of the December strength from last year? So just some directional color, using your third quarter guidance as a marker would be helpful, assuming that the fourth quarter demand is in line with what you've assumed for the third quarter.

Our next question.

Comes from the line of Atul maheswari with UBS your line is open.

Good morning. Uh thanks a lot for taking my question.

On fourth quarter. I know you're not providing resin guidance yet, but assuming demand stays at current levels.

Marty St. George: Okay, hi, thanks for the question. I'm not even going to come close to approximating a guide, so I'm going to answer your question very carefully, because we've deliberately chosen not to guide fourth quarter. And there's really two reasons. One of them is that When so much of the strength we're seeing in third quarter is coming from close-end bookings, which is a new pattern for us, I don't know that we want to call that as a permanent change in the booking curve, number one. Number two, there's a lot of uncertainty as far as the ASMs that are going to be out there in the industry.

Uh, should rather than improve versus the third quarter, you know, on a on a year-over-year basis, so fourth quarter year-over-year versus third quarter year-over-year. Does that improve uh in the fourth quarter uh if demand stays at current levels or does it take a step back given you lapse some of the December strength from last year's so just some directional color using your third quarter guidance as a marketer would be helpful assuming uh that the fourth quarter demand is in line with what it is doing for the third quarter.

Okay. High School. Thanks for the question. Um, I'm not even gonna come close to approximating a guide. So I'm gonna answer your question very carefully because we've deliberately chosen not to guide Q4. And there's really two reasons. One of them is that.

Marty St. George: I think if you look at what airlines have reported their growth was, that would give you one assumption on RASM. If you look at what's actually out there loaded and what practice has been as far as people actually flying, that would give you a different number. And frankly, we are still offering a little bit too many ASMs in the fourth quarter. If you look at our annual guide for ASMs and look what's out there selling, it's very easy to do the math that we have probably a little over a point of ASMs to pull in the fourth quarter that are still out there selling.

When so much of the strength we're seeing in Q3 is coming from close-in bookings, which is a new pattern for us, I don't know that we want to call that a permanent change in the booking curve. Number one, number two, there's a lot of uncertainty as far as the ASMs are going to be out there in the industry. I think if you look at what airlines have reported, their growth was... that would give you.

Marty St. George: So I think with the lack of visibility on both the pace on how permanent this change in booking patterns will be, and also on whether the capacity cuts in the fourth quarter will go forward for the rest of the industry, I think it's way too early to tell. That being the case, I think that what we've seen as far as the big overperformance in second quarter, and then on top of that, the progression in third quarter, we're feeling very confident about where the revenue environment is as far as recovery, but I think it's way too soon to call the specifics of what you're asking for fourth quarter.

Marty St. George: Yeah, we have less than 20% booked for Q4.

On both the pay, the pay. So on on you know, how permanent this change in, uh booking patterns will be and also on whether the capacity Cuts in the fourth quarter will will go forward for the rest of the industry. I think it's very too early to tell that being the case. You know, I think that you know what we've seen as far as a big over performance in September, excuse me in second quarter. And then on top of that, the progression in the third quarter, that we're feeling very confident about where the revenue environment is as far as recovery. But I think it's way too soon to call that that, you know, the specifics of what you're asking for fourth quarter. Yeah, we have less than

Marty St. George: As we get a position to provide an update. Okay, fair enough.

Marty St. George: And then as my follow up, as you return to growth next year, Where will this growth be concentrated? Like what markets, geographies that you believe you're underserving today that could benefit from this growth? And related to that, how do you ensure that this growth does not cause any meaningful RASM dilution next year that could maybe offset some of the CASMX benefit that you have? Yeah, thanks for the question.

Okay, fair enough. Um, and then as my follow up uh, as you return to growth next year,

Where will this grow to be concentrated? Like, what markets and geographies do you believe you are under-serving today that could benefit from this growth? And related to that, how do you ensure that this growth does not cause any meaningful brand dilution next year that could maybe offset some of the Chasm X benefit that you might get?

Marty St. George: So we're not going to open the playbook and tell our competitors where we're flying next year. So, you know, I think we'll keep that close to the vest until we're ready to communicate more carefully what we're going to be doing with with that flying. I think in terms of your second question around around how we're thinking about ensuring that the growth doesn't erode RASM and or impact sort of that low single digit cost trajectory. A few things, you know, the growth is very capital efficient. We already own these aircrafts that are coming back into service.

Yeah, thanks for the question. Um, so we're not going to uh open the Playbook until our competitors where we're flying next year. So, um, you know, I think we'll, we'll keep that, uh, close to the vest until we're ready to communicate. Um, the more carefully, what, uh, we're going to be doing with, um, with that flying, I think in terms of your second question around, um, uh, around how we're thinking about ensuring that the growth doesn't erode, um, rather than and or, um,

Marty St. George: So there's very small costs associated with that, as you think about it. But, you know, if the environment doesn't improve or further degrades, we have a number of different levers we can pull to manage that growth. And I think if you look at what we've been doing this year, we've been doing just that. So we've reduced capacity. We've looked at you know, making actions with the fleet. So we've taken four of our 10 classics, and we're not going to be restyling those. We've also sold two XLRs. And then we can obviously adjust utilization up and down as the case may be.

Marty St. George: So, you know, I think we've got a track record of being pretty aggressive with the fleet to manage the demand environment, whether, you know, it's the sales that we've done or, you know, as we think about going forward, needing to manage capacity closer in. So, you know, we'll adjust as we need to. But the goal is very efficient growth because we already own these aircraft and it should drive improvements to unit costs.

Impact. Sort of that low single digit cost, um, trajectory, um, a few things, you know, the growth is very Capital efficient, we already own these aircrafts that are coming back into service. Um, so there's very small costs um associated with that as we think about it, but, you know, if, if the environment doesn't improve or further degrades we have a number of different levels we can pull to manage that growth. And I think if you look at what we've been doing this year, we've been doing just that so we've reduced capacity. Um, we've looked at um, uh, you know, making actions with the fleet. So we've taken 4 of our 10 Classics and we're not going to be um, reselling. Those, we've also sold 2XL RS. Um, and then we can, obviously just utilization up and down as the case may be. So, you know, I think we've got a track record of being pretty aggressive with the fleet, um, to manage the demand environment. Whether um, you know, if it's the sales that we've done or, you know, as we think about going forward, needing to manage capacity. Um,

Closer in. So, um, you know, we'll adjust as we need to. But the goal is this is very efficient growth, um, because we already own these aircraft and it should drive improvements to unit costs.

Marty St. George: Thank you and good luck with the rest of the year.

Thank you, man. Good luck with the rest of the year.

Ravi Shanker: And our next question comes from the line of Ravi Shanker with Morgan Stanley. Your line is open. Just a couple of follow-ups here.

And our next question comes from the line of Robbie Chancre with Morgan Stanley. Your line is open.

Ravi Shanker: I think you said earlier in the call that you expect Blue Sky to be implemented in stages. How do you think about that kind of ramping the next two, three years? Is that going to be pretty lumpy and kind of give us some color on when the next stage is going in, or is it still going to be pretty linear?

Joanna Geraghty: Yeah, maybe I'll just, I'll just grab at high level. So we're still working on the implementation plan with United. So I don't want to get into, you know, a ton of specifics. I will say the NEA has set us up pretty well, the Northeast Alliance of America and the technology we did behind that has set us up pretty well from a technology perspective. So you'll start seeing kind of earn and burn and interline sales come sooner. There's very little contemplated this year. Those those will kind of layer in into 26. And then Paisley would come would come after that.

Uh, great thanks. Good morning, everyone. Uh, just a couple of follow-ups here. Uh, I think you said earlier on the call that you expect Blue Sky to be, uh, implemented in stages. So how do we think about that kind of ramping the next 2 to 3 years? Is that going to be pretty lumpy? Can you give us some color on kind of when the next stage is going in, or is it still going to be pretty linear?

Ravi Shanker: There's some more technology, needed to implement Paisley. Ultimately, we will not achieve, as I mentioned, kind of full year run rate until 2028. Understood.

So I don't want to get into, you know, a ton of specifics. Um, I will say the Nea has set us up pretty well, the the Northeast lines of America and the technology we did behind that is set us up pretty well from a technology perspective. Um, so you'll start seeing kind of earn and burn and Inner Line Sales come sooner. Um, there's very little, uh, contemplated this year. Um, those those will kind of layer in into 26. And then Paisley, uh, would come would come after that. There's some more technology, uh, uh needed to, uh, to implement Paisley.

Ultimately, we will not achieve. As I mentioned, kind of fully your run rate until 2028

Marty St. George: And Marty, I think you were talking about next quarter and kind of how a lot of capacity has come out and you've taken a lot of trough capacity. But again, just going back to the kind of little bit of a blindsiding the industry got in February and March, a lot of that came from closing weakness. Is that a risk that, you know, after a pretty decent kind of peak season with summer, that closing continues to kind of resume that drop off, if you will, in the third quarter? And if so, do you think the industry is taking on enough?

Understood, uh, and Marty, uh, I think you were talking about, uh, next quarter, and kind of how, uh, a lot of capacity has come out and and you've taken a lot of drop capacity. Uh, but again, this is going back to, uh, the, you know, a little bit of a blind sighting, the industry got and and February and March. And a lot of that came from closing weakness. Is that a risk that you know, after a pretty decent kind of peek uh, a season with Summer uh that close in continues to kind of resume.

Marty St. George: Hey Rory, I think the answer is... You know, we know what historical patterns have looked like as far as seasonality. I think the only question is, do we think economic sentiment, customer sentiment will take a step back? And I don't see any indication that that's going to be coming. Again, we do find the closer nature of this to be a little bit different, which is why we're a little bit apprehensive. But I don't think we're looking at this like waiting for a shoe to drop. I, you know, if you look, we've gone back and looked at or four or five relatively big stepbacks in demand, whether it's World Financial Crisis, 9-11, dot-com bust, things like that.

That drop off if you will uh, in the third quarter. And if they're going to reducing the industry is taking not enough.

um, hey RI I I think the answer is

You know, we know what historical patterns have looked like as far as seasonality, I think the only question is, um, do we think economic sentiment customer sentiment will take a step back and I don't see any indication that that's going to be coming. Um, again we do find the clothes in nature of this to be a little bit different which is why we're a little bit apprehensive, but I don't think we're looking at this like, we're waiting for a shooter drop. I I you know, if you look we've gone back and looked at

Marty St. George: And they follow a relatively predictable pattern. And frankly, we had said that fourth quarter is when we thought there'd be an inflection as far as a demand coming back up, because that's what we see historically in situations like this. And we actually see it in the third quarter. So from this point, I don't see any reason to be too cautious about it. But I'm probably more worried about the capacity situation than I am than the demand situation. But obviously, we watch it very closely. We do have a good base in the books for fourth quarter, but we have a lot of bookies to go.

Big step backs in demand, you know, whether it's, you know, a world financial crisis, 9/11, um, you know, combusts, things like that. And they follow a relatively predictable pattern. And frankly, um, we had said that the fourth quarter was when we thought there'd be an inflection as far as um,

Marty St. George: So I wouldn't want to get too far ahead of myself on that.

Ursula Hurley: Yeah, if I could just add, I mean, I think we were the first to call it this year when we saw it. And we very, very quick steps to try to drive cost savings out of the business and reduce capacity. And so we've got a playbook so that we can try to make the business as flexible as possible. And we do see stepbacks in demand. And so I think if you look at what we did in kind of Q1 and into Q2 around reducing capacity, reducing discretionary spending, and other cost savings measures, I think we're always focused on how we can try to keep the business as agile as possible in an industry that is more difficult to pull some of those costs out.

Uh a demand coming back up because that's what we see historically in situations like this and like we're actually seeing a third quarter. So from this point I I don't see any reason to be too cautious about it but uh I'm probably more worried about the capacity situation than I am than than than the demand situation. But obviously we watch it very closely. You know, we do have a good base in the books for fourth quarter but we have a lot of bookkeeping to go. So I wouldn't I wouldn't want to get too far ahead of myself on that. Yeah if I could just add I mean I think we were the first to call it uh this year when we saw it and made very, very quick steps to try to drive cost savings out of the business and reduce capacity. And so we've got a Playbook so that we can try to make the business as flexible as possible. And we do see, um, Step backs in demand. And so I think if you look at what we did in kind of q1 and into Q2 around, what do you think capacity reducing discretionary spending um and you know, other cost savings measures? You know, I think we're always focused on how we can try to keep the business as agile as possible. Um, in an industry that you know is is more difficult to pull some of those costs out.

Closer in.

Ursula Hurley: Very helpful.

Ursula Hurley: Thanks, guys.

Very helpful. Thanks guys.

Conor Cunningham: And our final question comes from the line of Conor Cunningham with Mellius Research. Your line is open. Hi everyone, thank you for squeezing me in. Just on, maybe I'm sticking with the, I mean, I appreciate that you're not giving fourth quarter guidance, because it is obviously very dynamic. But I'm just, what I think, I'd love to get your thoughts just on the capacity setup for 4Q in general, because last year was particularly strange for the election and so on. And, you know, when I think about how the progression of last year kind of played out, October and November were particularly weak, and then really, really strong in December of last year post election.

And our final question comes from the line.

Connor Cunningham with Milius research.

Marty St. George: And so I think the biggest fear that a lot of folks have right now is that there's going to be too much supply come the fall, given the fact that BASM isn't inflecting a little bit here. So if you could just talk about the setup in terms of supply into the end of this year, just how you think it all unfolds in general. Thank you.

Marty St. George: All right, thanks, Conor. And yes, obviously, this is one of our biggest concerns with calling the fourth quarter. But I can only talk about my view of the world, I can't talk about what our competitors are going to do, because I really don't know. I know what they've said, and we'll see what they actually do, because those tend to have been different at some points. We're pretty consistent with what we say and what we do and things like this. We have, right now, we do have a little bit more capacity selling in the fourth quarter, that capacity coming out relatively soon.

Hi everyone. Thank you for squeezing me in just on. Uh, maybe not sticking with the, I mean, I I appreciate that you're not giving fourth quarter guidance because this is the very Dynamic. But I'm just what I think, uh, I would love to get your thoughts just on the capacity set up for 4q in general, because last year was particularly strange for the election and so on. And, you know, when I think about how the progression of last year kind of played out, October and November were particularly weak, and then really, really strong, uh, in December of last year, post election. So, can you, I, I think the biggest fear that a lot of folks have right now is that there's going to be too much Supply come the fall, given the fact that thousand isn't, you know, infecting a little bit here. So if you could just talk about the setup in terms of supply and to the end of of, of this year, just how you think it all unfolds in general, thank you.

Marty St. George: We've given a guide for ISMs for the year, and which you can calculate the fourth quarter number out of that. And that's what we're going to fly. I mean, absent some significant change in demand, you know, we do the ASM planning based on what we see demand to be. I think we've made incredible steps in this network in the last year, as far as all the changes we made tied to JetForward, and then followed that up with some very aggressive sculpting of peak versus trough. And frankly, I go back to the thing which I am eternally grateful for, is how well this company has risen to the occasion, and continue to meet our cost guide, while we were doing some pretty aggressive ASM pulls on the Tuesday, Wednesday, Saturdays of the world.

All right, thanks Connor. And yes, obviously, this is 1 of our biggest concerns with calling the fourth quarter. Um, but I I can only talk about my view of the world. I can't talk about what our competitors are going to do because I really don't know. Uh, I know what they said and we'll see what they actually do. Because those send you have been different at some points, uh, we're pretty consistent with what we say and what we do and things like this, um, we have right now, we do have a little bit more capacity selling in the fourth quarter that capacity coming out relatively soon. Uh, we've given a guy

Marty St. George: So, I think we're at the point now where we feel relatively free to do these, you know, these migratory creative activities, knowing that we'll get the cost out, and we'll continue to do that. You know, fourth quarter is a pretty heavily trough, you know, pretty heavily trough quarter. I mean, certainly October, half of November, half of December, it's definitely a trough. And we're going to be pretty aggressive as far as pulling capacity during those periods. Again, this is not, I'm not telegraphing it, you already see it out there already, and what we've loaded, that we pull the troughs down pretty well.

For isms for the, for the year and which you can, you can calculate the fourth quarter number out of that. And that's what we're going to fly. I mean absent, some significant change in demand. You know, we, we we, we do the ASM planning based on what we see demand to be. Uh, I think we've made incredible steps in this network in the last year. As far as all the changes, we made tied to that forward and Then followed that up with, um, some very aggressive sculpting of peak versus trough. And frankly, I go back to the thing, which I am eternally grateful for is, how well this company has risen to the occasion and continue to meet our cost guide while we were doing some pretty aggressive ASM. Polls on the Tuesday, Wednesday, Saturdays of the world. So I think we're at the point now where um, we feel relatively free to, um, do these, you know, these major de creative activities knowing that we'll get the cost out and we'll continue to do that, you know, fourth quarter is a pretty heavily tough, you know, pretty pretty heavily troughed quarter. I mean, certainly October half of November half of December,

Marty St. George: And I look forward, you know, if we see this peak demand coming in like it is right now, I look forward to seeing that in the fourth quarter. But frankly, you know, we are a small airline in this business.

Ursula Hurley: Our ASMs are not going to drive significant impact industry rasm, like the big four are, and like, I think we'll have to see what they do before we're going to call Okay, that's super helpful. And then just a point of clarification, Ursula, the two-point benefit to CASMX from the fleet changes, is that a sale? Like, are you booking a gain that's going to ultimately be a contract expense? I'm just trying to understand the bridge as we move from third quarter to fourth quarter. My guess is there's just some sort of simplification benefit as well, but just any thoughts there, that would be helpful.

uh, it's definitely trough and we're going to be pretty aggressive as far as the link capacity during those periods. Again, this is not I'm not telegraphing. It you're already. See it out there already and what we've loaded that we pulled the trust down pretty well. Um and I look forward, you know, if we see this peak demand coming in like it like it is right now I look forward to seeing that in the fourth quarter but frankly, you know, we are we are a small airline in this business. Our asms are not going to drive significant impact industry rasim like the like the Big 4 hour and like, let's I think we'll have to see what they do before. We're going to call.

Ursula Hurley: Thank you.

Ursula Hurley: Yeah, so here's some color on the fleet transaction. So on a full year basis, we're actually gonna have a gain across all these asset sales to the tune of 1.25 points of CASM-X benefit on a full year basis. Okay, and so then you back up, and in the second quarter, we actually outperformed on the CHASM-X guidance, and about half a point was driven by a gain on sale of these assets. So, when I say assets, we got a multitude of different assets that we've been selling, right? It's the XLR-2 aircraft, it's the E-190s, and then we've also been doing some sale of these stocks on engines as well.

Okay, but that's super helpful and then just a point of clarification Ursula the 2-point benefit to cassim from the fleet changes, is that a sale, you know, like are you booking a game that's going to ultimately be a contra expense. I'm just trying to understand the bridge as we move from, from third quarter, to fourth quarter, my guess is, there's just some sort of simplification benefit as well, but just any thoughts there, that would be helpful. Thank you.

25 points of Chasm X benefit on a full year basis.

Okay? And, and so then you back up and in the second quarter, we actually outperformed on the chasm x. Uh, guidance in about half a point, what was driven by, um, a gain on sale of these assets. So, um, when I say assets, we got a multitude of different assets that we've been selling, right? It's the

Ursula Hurley: So, quite frankly, those assets are being pretty well received by the market, and so we're hence booking gains above and beyond what we had anticipated. So, it was 0.5 points in the second quarter. We've obviously got two points in the third quarter, and then on a full year basis, to round it out, it's 1.25 points. Awesome. Thank you very much.

SLR 2 aircraft. It's the e190sr.

Awesome, thank you very much.

Abby: And ladies and gentlemen, that will conclude today's call and we thank you for your participation. You may now disconnect.

For participation.