A：In 2025, JetBlue's operational performance has been a key proof point of its strategic transformation, beating all on-time performance targets and improving every metric compared to the prior year. This is notable as it followed a similarly strong performance in 2024. The company has made meaningful reliability improvements that customers have recognized.

A：The 'Jet Forward' initiative has led to an 8-point gain in net promoter score (NPS) and a 17-point improvement since the beginning of 2024. This improvement in customer experience has driven loyalty, with an increased rate of customers returning to fly JetBlue.

A：The 'Jet Forward' initiatives delivered an incremental EBIT of $305 million in 2025, which was slightly better than initial expectations. For 2026, the guidance is based on further improvements from these initiatives, plus several new ones, aiming for a total incremental EBIT of $615 million, with potential upside depending on macro environment and GDP recovery or fuel price reduction.

A：Macro uncertainty pressured industry demand in 2025 and impacted results, resulting in an adjusted operating margin of negative 3.7%, which was more than four points below the initial full-year operating margin guidance of 0 to 1%. This uncertainty represented a significant headwind to operating margin for the year.

A：For 2026, the full year guidance is based on 3.5 points of capacity growth, a 3.5 point improvement in unit revenue, and a decrease in nonfuel unit cost. It anticipates a breakeven operating margin or better and a forecasted incremental EBIT of $310 million from 'Jet Forward', totaling $615 million for the year. Factors expected to contribute include the continued ramp of existing initiatives and the launch of new ones like the Blue Sky collaboration with United and the opening of the Boston Lounge.

A：The strategic priorities for 2026 include rolling out the remaining key components of the Blue Sky collaboration with United, opening the Boston Lounge, and launching a domestic first class product. The company also plans to refresh its award-winning Mint cabins and continue improving the core Blue basics, reliability, and hospitality.

A：The loyalty program's revenue grew by 8% in 2025, representing over 13% of total revenue, up from 11% in 2023. The growth is attributed to the introduction of the Blue Sky collaboration with United, which has made the True Blue loyalty program more relevant and contributed to continued premium revenue growth.

A：The Fort Lauderdale expansion significantly impacted JetBlue's performance with the addition of substantial close-in capacity. The strategic growth materialized faster than expected, leading to a stronger-than-anticipated customer response. Fort Lauderdale serves as a strong premium leisure market with potential for additional Jet Blue flow and is well-connected to the northeast, Latin, and the Caribbean network.

A：For the first quarter, capacity is expected to grow 0.5% to 3.5% year over year, with unit revenue growth ranging from flat to up. This is supported by momentum from the fourth quarter and a constructive competitive capacity backdrop. The closure of Cal airspace in early January and some lingering demand impact will be a headwind to RASM, which is factored into the guidance.

A：The four key drivers for revenue growth are loyalty, product enhancements, Blue Sky and Paisley initiatives, and improvements in the customer satisfaction and network changes, which are expected to contribute to a more competitive customer value proposition.

A：Despite the challenging macro environment, United achieved $305 million of incremental EBIT in 2025 by proactively reducing capacity, identifying cost savings, and progressing with Jet Forward initiatives.

A：For the full year in 2026, United expects positive ex-fuel growth of 1 to 3%, with cost savings driven by initiatives like improved tooling and utilization of AI for optimization, better management of disruptions, and greater self-service. Additionally, they anticipate benefits from fleet simplification and modernizing fuel processes.

A：Revenue is expected to grow between 2 to 5% for the first quarter in 2026, supported by initiatives ramping up and year over year capacity growth. Factors contributing to this growth include the reduction of costs and investments in customer experience despite higher rent and landing fees, and the impact of tariffs.

A：The expected investment in capital expenditures for 2026 is approximately $900 million, driven by 14 aircraft deliveries and the start of domestic first class retrofit. This is in line with the reduction in capital spending plans from $6 billion to $3 billion as a result of efforts made since the start of Jet Forward.

A：The path to positive free cash flow is expected to be achieved by the end of 2027, supported by the benefits from Jet Forward and improvements in EBITDA. Priorities for the coming year remain the same: achieving sustained operating profitability, generating positive free cash flow, and restoring the health of the balance sheet.

A：The introduction of domestic first class products later in the year will not significantly increase the total percentage of premium seats. The product is being funded by a reduction in even more capacity, with an increase in seat quality and yield. The benefit of domestic first class is expected to be clear in the product and initiative under Jet Forward.

A：Leisure revenue is currently showing a flattish revenue component, with flat year-over-year performance for this month. The full-year guidance aligns with the trajectory based on fourth quarter performance and first quarter bookings, which are showing strong results. Unit revenue growth for 2026 is fundamentally based on the performance and bookings from these periods.

A：The current outlook for demand strength is positive, with a normal booking curve, except for a slight drop in the Caribbean for the first couple of weeks of January. The domestic coach market has shown a notable recovery, and the convergence of domestic and international performance is optimistic. There is also no expectation for a significant change in competitive capacity or assumptions about further pulldowns.

A：The impact of competitive capacity in the first half of the year on current trends was not specifically quantified, but it is mentioned that competitive capacity is in a relatively good environment. The competitive capacity has improved with a significant pull-down in the competitive landscape. However, no assumptions have been made about future competitive capacity changes.

A：Fort Lauderdale is expected to change under the current strategy by potentially improving connectivity as a result of the addition of more flights. Fort Lauderdale has a long history with JetBlue and has grown substantially over the years. The constraints at the airport have been addressed with the pull-down from Spirit, which has made gate resources available. Fort Lauderdale is seen as a premium market and an opportunity for growth, especially with diversification beyond the Northeast. Fort Lauderdale is also seen as a strategic location for creating connections and is performing well in terms of connectivity.

A：The 500 million raised is included in the $580 million guidance. It will be used to support the convertible debt paydown due in April and another financing likely to occur in the back half of the year.

A：Premium credit card sign-ups are exceeding expectations and are not limited to a specific area such as the New York region. They are occurring throughout the network, driven by the value proposition of the card and the importance of New York and Boston as destinations for many customers.

A：The potential for further growth with the BlueSky partnership with United is significant. The program allows JetBlue to compete with legacy carriers and provides opportunities for growth without requiring extensive capital expenditure. The partnership with United has been operational for about six months, and it is too early to measure the full impact. However, the integration of the True Blue program on United's website and the ability to earn miles on JetBlue flights are seen as important contributors to growth. The distribution of mutual benefits and the positive customer experience can enhance brand perception and potentially lead to more partnerships or improved existing ones.

A：The updated unencumbered assets for 2026 are $6.5 billion, an increase from the previously quoted $5 billion. The main drivers of this increase are the appraisals on the unencumbered assets and the addition of new cash purchases of aircraft deliveries last year.

A：The unencumbered asset base breakdown is as follows: approximately 30% is comprised of aircraft and engines, about 20% is loyalty programs, and the remainder is flat gates and routes in their brand.

A：The rollout of first-class seating is expected to begin in the third quarter, with the first airplane undergoing certification. The implementation is relatively quick, with 20% to over 27% of the fleet expected to be equipped by the end of the year.

A：The fourth quarter's performance is attributed to better than expected revenue, with Fort Lauderdale performing better than the system. The improvement is not attributed to any specific assumption about a competitor's situation. Fort Lauderdale is expected to be accretive to the overall system profitability.

A：It is not assumed that the competitive environment will change significantly, and there is no secret upside included in the guidance provided. The performance is based on multiple databases and data that are not fully available yet. It is also not assumed that Spirit Airlines will significantly shrink from their current position.

A：The 2026 profitability expectations are set to be between 17% and 20% of trailing 12 months revenues, excluding the revolver. The targets are based on what is known today and the team's ability to execute. The company believes it has peaked in debt levels and is leveraging EBITDA growth and debt reduction to improve leverage metrics. Fleet transactions, particularly the sale of E190s and engine sale-leasebacks, have helped offset fundraise requirements, contributing to a controllable cost benefit in 2026.

A：The capacity reductions at Fort Lauderdale have been a factor impacting performance, but the company has not assumed these reductions are temporary. They have also not assumed that Spirit Airlines will shrink significantly. The company has multiple scenarios in place and is ready for various outcomes to ensure customer protection and to bring the JetBlue product to more people. Fort Lauderdale is expected to contribute positively to the system profitability.

A：The airline industry is facing challenges due to a lot of interaction between different segments, such as the $900 million proposal and the operational changes within the company. As these changes are ongoing and closely related, they are difficult to measure as individual initiatives. The industry is evolving rapidly and it is becoming tougher to assess the impact of each initiative.

A：The financial impacts of JetBlue's initiatives were positive, with the company focusing on controlling costs and executing on their strategic plan. They adjusted capacity in response to supply and demand and made decisions around discretionary expenses and budget cuts. They also experienced some challenges with the A320 fleet due to supply chain issues, resulting in aircraft being grounded. Discussions were ongoing with Pratt and Whitney regarding compensation for these issues, and while the amount was not considered material to achieving full-year guidance, it was an area of focus for improving the financial outlook.

A：Weather events caused the cancellation of over 100 flights, which impacted the airline's costs and operations. The pressure on costs and ASMs was acknowledged, but it was also mentioned that these events occurred during a trough and could not have come at a better time. The team's execution was praised for getting the airline back on track, with significantly fewer cancellations reported as of the time of the speech.

A：The airline plans to manage potential future challenges by continuing to execute on their strategy and evaluating opportunities like premium lounges based on market demand and return potential. They are focused on delivering positive operating margin and generating free cash flow by the end of the following year, while adjusting capital expenditures if needed. They have a track record of hitting cost targets and will lean into that to manage any macro step backs as they did in previous downturns.