Savi Syth

Savi Syth from Raymond James Financial, Inc. sought clarity on the incremental EBIT contribution from Jet Forward in 2026 and 2027, and the expected macro tailwinds and headwinds for the EBIT bridge to 2027 profitability. She also inquired about JetBlue's liquidity and leverage position, and the anticipated financing needs over the next 12 to 18 months.

Answer

Ursula Hurley, CFO of JetBlue Airways, indicated that the $850-$950 million Jet Forward target is expected to contribute roughly one-third per year. She reiterated the 2026 goal of achieving a break-even or better operating margin, contingent on an improving macro environment, and highlighted premium initiatives and domestic first class as significant drivers. Hurley stated that the August 2024 capital raise provided a strong liquidity runway through 2025, with liquidity expected to exceed the 20% target. She projected a "modest" capital raise in 2026 to support new aircraft deliveries and a $325 million convertible debt maturity, emphasizing flexibility from over $5 billion in unencumbered assets.

Savi Syth asked for insights into the progression of year-over-year RASM for Q1 2026, assuming no demand environment change, based solely on the ramp-up of initiatives and current capacity plans.

Answer

CFO Tom Doxey stated that the $1 billion benefit from extra legroom and seat assignments remains intact for 2026, with other initiatives approaching run rate by Q1. COO Andrew Watterson highlighted modest Q1 capacity growth, continued load factor improvements, and yield improvements from seat fees and buy-ups starting January 27. CEO Bob Jordan further explained that the 2026 EBIT stack would include the $1 billion from assigned seating/extra legroom and approximately $700 million from a full annualized year of bag fees, along with other maturing initiatives.

On behalf of Savi Syth from Raymond James, Connor asked for details on Joby's 2025 flight test goals, particularly the objectives for testing in Dubai, and the advantages of involving FAA pilots in simulators early.

Answer

Founder and CEO JoeBen Bevirt explained that key goals include preparing an aircraft for hot weather testing in Dubai to support the service launch. He emphasized that FAA pilots have already flown test points in simulators and observed remote flights, which streamlines the process for official TIA flights where they will fly the aircraft themselves.

Savi Syth of Raymond James inquired about the outlook for the Government Services business in the U.S. amidst political spending discussions. She also asked for management's view on which global regions might be the easiest or have the most demand for initiating Advanced Air Mobility (AAM) operations.

Answer

President and CEO Chris Bradshaw responded that the company expects a continuation of current business in the U.S. government sector, with some optimism for incremental opportunities if the government seeks efficiencies through private sector partnerships. Regarding AAM, Bradshaw suggested that initial scaled operations might occur outside the U.S. and Europe, in regions like the Middle East or Africa, where state sponsorship is strong and regulatory hurdles may be lower.

Asked if the company is seeing booking improvements at the end of the quarter and sought clarification on whether the recent leasing transaction means the entire aircraft order book has been monetized.

Answer

It is too soon to see significant improvement in advanced bookings, but they are seeing some positive trends in the booking curve closer to departure dates. The transaction was not a monetization of the full order book; it was a structured sale-leaseback for 36 aircraft and a PDP advance for 52 others to enhance near-term liquidity, with the latter 52 remaining in Spirit's order book.

In a follow-up, Savi Syth from Raymond James requested an update on the cargo business, particularly the addition of a new 737-800 freighter, and asked about the progress of the European joint venture.

Answer

Chairman and CEO Jonathan Ornstein confirmed the addition of a 737-800, expanding the DHL cargo operation to four active aircraft and aiming for at least breakeven performance. He and President Michael Lotz added that the European JV is expected to receive its operating certificate by April 2023, positioning it as a platform for new technologies and near-term regional jet contracts.