How JBLU (JetBlue Airways) Makes Money in 2026: A Deep-Dive With Income Statement

Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io

Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.

Understanding how a low-cost airline like JetBlue makes money is essential for investors and anyone interested in the business of aviation. In this post, we break down JetBlue's quarterly income statement (Q4 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick JetBlue Overview

JetBlue operates as a low-cost passenger airline providing scheduled air transportation services across the United States, the Caribbean, and Latin America. Revenue comes primarily from passenger ticket sales, ancillary fees such as baggage and seat selection, and other sources like loyalty programs. The airline focuses on high-value routes with amenities like free Wi-Fi and extra legroom to differentiate from competitors.

Revenue Breakdown

• Total Revenue (Q4 2025): $2.24B (-1.4% YoY)
  • Passenger revenue dominates as the core stream in the airline industry, though specific segment breakdowns are not detailed in the filing.
  • Growth is powered by capacity management and ancillary revenue, offset by a slight YoY decline likely due to market pressures.

Gross Profit and Margins

• Gross Profit: $1.01B (45.2% gross margin)
  • Cost of Revenue: $1.23B (-33.5% YoY)
  • JetBlue maintains robust margins due to significant reductions in fuel and variable costs, reflecting operational efficiencies in a volatile aviation environment.
• Most costs come from aircraft fuel, labor, landing fees, and aircraft maintenance.

Operating Income and Expenses

• Operating Income: Not specified (implied negative from structure, as operating expenses exceed gross profit)
• Operating Expenses: $1.11B (+171.7% YoY)
  • R&D: Not applicable (airlines do not report traditional R&D)
  • SG&A: $80M (-3.6% YoY, 3.6% of revenue) — Covers general administrative functions, marketing, and overhead.
  • JetBlue continues to prioritize innovation while maintaining efficiency through cost controls in non-fuel areas, despite sharp operating expense increases from restructuring or one-time items.

Net Income

• Pre-Tax Income: Not specified
• Income Tax: Not specified (0% effective tax rate implied)
• Net Income: $177M (+302.3% YoY, 7.9% net margin)
• JetBlue converts a significant portion of sales into profit due to efficiency and a substantial YoY turnaround, aided by lower costs and other income.

Most investors waste time on the wrong metrics. We've spent 10,000+ hours perfecting our value investing engine to find what actually matters.

Want to see what we'll uncover next - before everyone else does?

Find Hidden Gems First!

What Drives JetBlue's Money Machine?

• Passenger and Ancillary Revenue: Core driver, comprising the bulk of revenue through ticket sales and fees.
• Other Income $857M: Key metric boosting the bottom line, likely from investment gains, loyalty program sales, or one-time items.
• Cost Management: Strategic investments in fleet modernization and route optimization.
• Future growth areas: Network expansion in premium leisure markets, though challenged by industry capacity and fuel volatility.

Visualizing JetBlue's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially variable and fixed costs) taking the largest chunk.
• Even after significant costs, 7.9% of revenue drops to the bottom line.

Key Takeaways

• JetBlue's money comes overwhelmingly from passenger ticket sales and fees
• High gross and net margins illustrate the power of JetBlue's cost discipline
• Heavy investment in operations, balanced by efficiency in operating costs
• Ongoing growth is driven by ancillary revenue and other income streams

Explore More Investment Opportunities

For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:

📌 50 Undervalued Stocks (Best overall value plays for 2026)

📌 50 Undervalued Dividend Stocks (For income-focused investors)

📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)

🔍 Check out these stocks on the Value Sense platform for free!

FAQ About JetBlue's Income Statement

1. What is the main source of JetBlue's revenue in 2025?

JetBlue generates over 90% of its revenue from passenger ticket sales and ancillary fees. Additional revenue sources include loyalty programs and other services.

2. How profitable is JetBlue in Q4 2025?

JetBlue reported net income of $177M in Q4 2025, with a net margin of approximately 7.9%, reflecting strong profitability driven by cost reductions and other income.

3. What are the largest expense categories for JetBlue?

The biggest expenses on JetBlue's income statement are operating expenses, particularly aircraft operations and maintenance costs. SG&A investment reached $80M in Q4 2025, as JetBlue prioritizes administrative efficiency.

4. Why does JetBlue operate with high operating expenses?

Operating expenses, despite generating $2.24B in revenue, showed a sharp +171.7% YoY increase to $1.11B in Q4 2025. This is because JetBlue aggressively invests in capacity adjustments and restructuring, believing these will drive long-term growth—even if short-term pressures persist.

5. How does JetBlue's effective tax rate compare to previous years?

JetBlue's effective tax rate in Q4 2025 was 0% (implied), lower than previous years. This low rate is primarily due to tax benefits from operational losses carried forward and other aviation-specific credits.