JBLU

JBLU is a structurally unprofitable airline, not a cheap turnaround. The income statement shows five consecutive years of net losses (-$182M, -$362M, -$310M, -$795M, -$602M from FY2021–FY2025), and FY2025 revenue actually shrank 2.3% to $9.06B on what management calls 'softening demand' worsened by tariff uncertainty that 'weakened consumer demand.' The headline 24% YoY improvement in net loss is largely an artifact, not operating progress: the MD&A attributes most of it to the non-recurring 2024 Spirit write-off of $532M and lower fuel — while admitting underlying cost pressure is rising (CASM ex-fuel +6.2%, adjusted operating expense +4.4%, higher maintenance and wages). Strip the one-timers and the core economics are still loss-making at a -4.1% operating margin and -6.6% net margin.

The balance sheet is the bigger problem. Operating cash flow turned negative at -$94M (down 165% YoY), so the business is burning cash from operations while still carrying $1.08B of capex against fleet commitments that run through 2033 — a long, inflexible order book the filing flags as a competitive risk if aircraft technology shifts. Stockholders' equity fell 19.7% to $2.12B and retained earnings dropped 45.6%, so losses are steadily eating the equity cushion. Liquidity is thin: current assets of $3.24B against current liabilities of $4.40B is a 0.74 current ratio, and current assets fell 24% year-over-year. ROE of -28.4% is the predictable result. Management has also pledged TrueBlue loyalty assets as collateral, with covenants restricting that program — a sign of how much it has had to lean on financing.