JetBlue Announces Fourth Quarter 2023 Results
- None.
- None.
Insights
A critical examination of JetBlue's Q4 financial results reveals a mixed picture. The reported net loss of $104 million, while significant, is mitigated by the fact that the company beat revenue and cost expectations. The proactive deferral of approximately $2.5 billion in aircraft capital expenditures is a strategic move, likely aimed at improving short-term liquidity and providing financial flexibility. However, this deferral could also signal a cautious approach to capacity growth, aligning with the forecasted reduction in available seat miles (ASMs) for the upcoming year.
The company's focus on cost-saving measures, such as the structural cost program aimed at achieving up to $200 million in savings by the end of 2024 and fleet modernization, which is expected to save $75 million through 2024, suggests a disciplined approach to expense management. The challenge will be to balance these savings with necessary investments to stimulate revenue growth and maintain operational excellence.
Looking ahead, investors should monitor the execution of the $300 million revenue initiatives alongside the anticipated mid-to-high single-digit increase in CASM ex-Fuel for the full year of 2024. This will be critical to gauge the company's ability to navigate the competitive airline industry and return to profitability.
JetBlue's strategic network changes, including the focus on leisure and VFR (Visiting Friends and Relatives) routes and expansion into the Caribbean and transatlantic destinations, indicate a targeted approach to capturing high-demand markets. The launch of new routes and the resizing of their presence at LaGuardia Airport are moves that could potentially enhance the airline's competitive positioning and market share in these segments.
The introduction of the new TrueBlue® loyalty program is another significant development, aimed at fostering customer loyalty and driving engagement. The positive response, especially from Mosaic customers, suggests potential for increased customer retention and spending. The long-term success of these initiatives will depend on their ability to contribute to revenue diversification and margin improvement.
JetBlue's emphasis on sustainability through fleet upgrades, increased use of sustainable aviation fuel and fuel optimization efforts, resulting in a 6% reduction in carbon emissions compared to 2019 levels, positions the airline as a leader in the industry's transition to more eco-friendly operations. These efforts not only respond to growing environmental concerns but may also provide a competitive advantage as consumers and regulators increasingly favor companies with strong sustainability practices.
The airline's Gateways Program, aimed at diversifying the talent pool and enhancing career accessibility, reflects a broader industry trend towards inclusivity and corporate social responsibility. Such programs can improve brand reputation and employee satisfaction, which are critical factors for long-term success.
Fourth quarter revenue and costs beat expectations
Reached agreement to defer
Focused on restoring profitability through new revenue and cost initiatives in 2024
“We closed the year on a strong note thanks to the hard work and continued execution of our team as fourth quarter revenue and costs beat our expectations,” said Robin Hayes, JetBlue’s chief executive officer. “Looking ahead, I am confident that the next chapter of JetBlue, under Joanna’s leadership, will deliver a refreshed focus on our core customer, expanded opportunities for our crewmembers, and a return to JetBlue’s historical earnings power for our shareholders.”
“2024 is an important year of change for JetBlue and we are taking aggressive action, including launching
Fourth Quarter 2023 Financial Results
-
Net loss for the fourth quarter of 2023 under Generally Accepted Accounting Principles ("GAAP") of
$104 million $(0.31) $63 million $(0.19) -
Fourth quarter of 2023 capacity increased by
3.3% year-over-year. -
Operating revenue of
$2.3 billion 3.7% year-over-year. -
Operating expense per available seat mile ("CASM") for the fourth quarter of 2023 decreased
2.4% year-over-year. -
Operating expense per available seat mile, excluding fuel and related taxes, other non-airline operating expenses, and special items ("CASM ex-Fuel") (1) for the fourth quarter of 2023 increased
7.6% (1) year-over-year. -
Average fuel price in the fourth quarter of 2023 of
$3.08
Fourth Quarter 2023 Key Highlights
-
Executed on Our Cost Initiatives
-
Achieved
$70 million $175 million $200 million -
Realized
$55 million $75 million
-
Achieved
-
Provided Exceptional Service for Our Customers
-
Delivered excellent operational performance in the fourth quarter with a completion factor of
99.8% , JetBlue’s best fourth quarter completion factor since 2004. -
Recognized by “The Points Guy” with an Editors’ Choice Award for Best Economy Class across
U.S. airlines for the fourth time. - Launched new TrueBlue® loyalty program offering new perks and options to customers, which to date has generated exceptional growth and engagement, particularly from Mosaic customers.
-
Delivered excellent operational performance in the fourth quarter with a completion factor of
-
Initiated Strategic Network Changes
- Redeployed assets to outperforming leisure and VFR routes and began the resizing of our presence at LaGuardia.
-
Expanded service to the
Caribbean with new nonstop flights toSt. Kitts and Nevis’s Robert Llewellyn Bradshaw International Airport fromNew York's John F.Kennedy International Airport (JFK), as well as new routes between theDominican Republic andOrlando ,Grenada and Boston Logan International Airport (BOS), theBahamas andLos Angeles andBelize City and JFK. -
Added new transatlantic destinations with daily service between JFK and Paris Charles de Gaulle, JFK and Amsterdam Schiphol Airport (AMS), and BOS and AMS, in addition to the announcement of two new seasonal routes to
Dublin andEdinburgh , both launching in Spring 2024.
-
Advanced Our Progress as a Sustainability Leader
-
Reduced our 2023 carbon emissions by
6% versus 2019 levels driven by fleet upgrades, a doubling of our use of sustainable aviation fuel versus 2022, and fuel optimization efforts. - Furthered efforts to diversify our talent pool and boost career accessibility in pilot and technician roles through our Gateways Program, with two-thirds of participants from underrepresented groups.
-
Reduced our 2023 carbon emissions by
Balance Sheet and Liquidity
-
Reached agreement to defer
~ of planned aircraft capital expenditures from 2024 – 2027 to 2028 and thereafter, providing a more consistent level of annual aircraft deliveries through the end of the decade.$2.5 billion -
Ended the fourth quarter with
$1.7 billion $600 million
Outlook
“As we look ahead in 2024, we are seeing positive momentum in our revenue growth. Demand during peak periods remains strong, and we continue to manage our capacity during off-peak periods to reflect evolving demand trends. We plan to continue to refine our network and product offering to better serve our leisure customers while diversifying revenues with margin-accretive initiatives,” continued Geraghty.
First Quarter and Full Year 2024 Outlook |
Estimated 1Q 2024 |
Estimated FY 2024 |
||
Available Seat Miles (ASMs) Year-Over-Year |
( |
Down low single digits |
||
Revenue Year-Over-Year |
( |
~Flat |
||
CASM Ex-Fuel (1) Year-Over-Year (2) |
|
Up mid-to-high single
|
||
Fuel Price per Gallon (3), (4) |
|
- |
||
Adjusted Operating Margin (1) |
- |
Approaching breakeven |
||
Capital Expenditures |
|
|
“We remain intensely focused on restoring profitability, taking steps to ensure every dollar we invest is making an impact. As part of these efforts, we are carefully evaluating deeper cuts to our controllable costs beyond our ongoing fleet modernization and structural cost programs. Through these initiatives, coupled with the evolution of our network and product offering, I am confident in our ability to re-establish profitability and position JetBlue to restore historical earnings power,” said Ursula Hurley, JetBlue’s chief financial officer.
Earnings Call Details
JetBlue will conduct a conference call to discuss its quarterly earnings today, January 30, 2024 at 10:00 a.m. Eastern Time. A live broadcast of the conference call will also be available via the internet at http://investor.jetblue.com. The webcast replay and presentation materials will be archived on the company’s website.
For further details, see the fourth quarter 2023 Earnings Presentation available via the internet at http://investor.jetblue.com.
About JetBlue
JetBlue is
Notes
- Non-GAAP financial measure; Note A provides a reconciliation of certain non-GAAP financial measures used in this release and explains the reasons management believes that presentation of these non-GAAP financial measures provides useful information to investors regarding JetBlue's financial condition and results of operations. In addition, refer to Note A for further details on non-GAAP forward-looking information.
- Includes the impact from the pilot union agreement of approximately two points for each the first quarter and full year 2024.
- Includes fuel taxes, hedges and other fuel fees.
- JetBlue utilizes the forward Brent crude curve and the forward Brent crude to jet crack spread to calculate the unhedged portion of its current quarter. Fuel price is based on forward curve as of January 19, 2024.
Forward-Looking Information
This Earnings Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this Earnings Release may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “expects,” “plans,” “intends,” “anticipates,” “indicates,” “remains,” “believes,” “estimates,” “forecast,” “guidance,” “outlook,” “may,” “will,” “should,” “seeks,” “goals,” “targets” or the negative of these terms or other similar expressions. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed, or assured. Forward-looking statements contained in this Earnings Release include, without limitation, statements regarding our outlook and future results of operations and financial position, expectations with respect to headwinds, including the continued wind down of the Northeast Alliance (“NEA”) with American Airlines Group Inc. (“American Airlines”), the impact of air traffic control ("ATC") driven delays, shifts in post-COVID customer demand, and fluctuations in fuel prices, and our business strategy and plans for future operations, including our planned merger (the “Merger”) with Spirit Airlines Inc. (“Spirit”) and the associated impacts on our business. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, the occurrence of any event, change or other circumstances, including outcomes of legal proceedings, that could give rise to the right of JetBlue or Spirit or both of them to terminate the Agreement and Plan of Merger dated as of July 28, 2022 (the “Merger Agreement”) and among Spirit and Sundown Acquisition Corp., a
Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this Earnings Release, could cause our results to differ materially from those expressed in the forward-looking statements. Further information concerning these and other factors is contained in JetBlue's filings with the
JETBLUE AIRWAYS CORPORATION |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||||||||
(in millions, except per share amounts) |
||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended December 31, |
|
Twelve Months Ended
|
|
||||||||||||||||||
(percent changes based on unrounded numbers) |
|
2023 |
|
|
|
2022 |
|
|
Percent
|
|
|
2023 |
|
|
|
2022 |
|
|
Percent
|
|
||
OPERATING REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Passenger |
$ |
2,166 |
|
|
$ |
2,267 |
|
|
(4.5 |
) |
|
$ |
9,008 |
|
|
$ |
8,586 |
|
|
4.9 |
|
|
Other |
|
159 |
|
|
|
148 |
|
|
7.7 |
|
|
|
607 |
|
|
|
572 |
|
|
6.2 |
|
|
Total operating revenues |
|
2,325 |
|
|
|
2,415 |
|
|
(3.7 |
) |
|
|
9,615 |
|
|
|
9,158 |
|
|
5.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Aircraft fuel and related taxes |
|
677 |
|
|
|
800 |
|
|
(15.2 |
) |
|
|
2,720 |
|
|
|
3,105 |
|
|
(12.4 |
) |
|
Salaries, wages and benefits |
|
751 |
|
|
|
689 |
|
|
9.0 |
|
|
|
3,055 |
|
|
|
2,747 |
|
|
11.2 |
|
|
Landing fees and other rents |
|
158 |
|
|
|
132 |
|
|
19.3 |
|
|
|
657 |
|
|
|
544 |
|
|
20.7 |
|
|
Depreciation and amortization |
|
159 |
|
|
|
150 |
|
|
5.9 |
|
|
|
621 |
|
|
|
585 |
|
|
6.1 |
|
|
Aircraft rent |
|
28 |
|
|
|
31 |
|
|
(11.3 |
) |
|
|
126 |
|
|
|
114 |
|
|
10.4 |
|
|
Sales and marketing |
|
78 |
|
|
|
73 |
|
|
7.3 |
|
|
|
316 |
|
|
|
289 |
|
|
9.2 |
|
|
Maintenance, materials and repairs |
|
142 |
|
|
|
98 |
|
|
44.3 |
|
|
|
654 |
|
|
|
591 |
|
|
10.9 |
|
|
Special items |
|
29 |
|
|
|
57 |
|
|
(48.6 |
) |
|
|
197 |
|
|
|
113 |
|
|
74.1 |
|
|
Other operating expenses |
|
370 |
|
|
|
342 |
|
|
8.2 |
|
|
|
1,499 |
|
|
|
1,368 |
|
|
9.6 |
|
|
Total operating expenses |
|
2,392 |
|
|
|
2,372 |
|
|
0.9 |
|
|
|
9,845 |
|
|
|
9,456 |
|
|
4.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME (LOSS) |
|
(67 |
) |
|
|
43 |
|
|
NM (1) |
|
|
(230 |
) |
|
|
(298 |
) |
|
(22.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating margin |
|
(2.9 |
) % |
|
|
1.8 |
% |
|
(4.7 |
) |
pts. |
|
(2.4 |
) % |
|
|
(3.3 |
) % |
|
0.9 |
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense |
|
(65 |
) |
|
|
(45 |
) |
|
43.6 |
|
|
|
(210 |
) |
|
|
(166 |
) |
|
26.9 |
|
|
Interest income |
|
25 |
|
|
|
15 |
|
|
65.4 |
|
|
|
89 |
|
|
|
39 |
|
|
NM |
|
|
Gain (loss) on investments, net |
|
3 |
|
|
|
(5 |
) |
|
NM |
|
|
|
9 |
|
|
|
(9 |
) |
|
NM |
|
|
Other |
|
(6 |
) |
|
|
(1 |
) |
|
NM |
|
|
|
8 |
|
|
|
(3 |
) |
|
NM |
|
|
Total other expense |
|
(43 |
) |
|
|
(36 |
) |
|
18.4 |
|
|
|
(104 |
) |
|
|
(139 |
) |
|
(24.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
INCOME (LOSS) BEFORE INCOME
|
|
(110 |
) |
|
|
7 |
|
|
NM |
|
|
|
(334 |
) |
|
|
(437 |
) |
|
(23.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pre-tax margin |
|
(4.7 |
) % |
|
|
0.3 |
% |
|
(5.0 |
) |
pts. |
|
(3.5 |
) % |
|
|
(4.8 |
) % |
|
1.3 |
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax benefit |
|
6 |
|
|
|
17 |
|
|
(63.0 |
) |
|
|
24 |
|
|
|
75 |
|
|
(67.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME (LOSS) |
$ |
(104 |
) |
|
$ |
24 |
|
|
NM |
|
|
$ |
(310 |
) |
|
$ |
(362 |
) |
|
(14.3 |
) |
|
EARNINGS (LOSS) PER COMMON
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
(0.31 |
) |
|
$ |
0.07 |
|
|
|
|
$ |
(0.93 |
) |
|
$ |
(1.12 |
) |
|
|
|
||
Diluted |
$ |
(0.31 |
) |
|
$ |
0.07 |
|
|
|
|
$ |
(0.93 |
) |
|
$ |
(1.12 |
) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
WEIGHTED AVERAGE SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
|
337.8 |
|
|
|
326.4 |
|
|
|
|
|
332.9 |
|
|
|
323.6 |
|
|
|
|
||
Diluted |
|
337.8 |
|
|
|
327.8 |
|
|
|
|
|
332.9 |
|
|
|
323.6 |
|
|
|
|
||
(1) Not meaningful or greater than |
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JETBLUE AIRWAYS CORPORATION |
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COMPARATIVE OPERATING STATISTICS |
||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
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|
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|
||||||||||||||
|
Three Months Ended December 31, |
|
Twelve Months Ended
|
|
||||||||||||||||||
(percent changes based on unrounded numbers) |
|
2023 |
|
|
|
2022 |
|
|
Percent Change |
|
|
2023 |
|
|
|
2022 |
|
|
Percent Change |
|
||
Revenue passengers (thousands) |
|
10,225 |
|
|
|
10,486 |
|
|
(2.5 |
) |
|
|
42,534 |
|
|
|
39,562 |
|
|
7.5 |
|
|
Revenue passenger miles (RPMs) (millions) |
|
13,628 |
|
|
|
13,695 |
|
|
(0.5 |
) |
|
|
56,578 |
|
|
|
52,552 |
|
|
7.7 |
|
|
Available seat miles (ASMs) (millions) |
|
17,013 |
|
|
|
16,470 |
|
|
3.3 |
|
|
|
68,497 |
|
|
|
64,475 |
|
|
6.2 |
|
|
Load factor |
|
80.1 |
% |
|
|
83.2 |
% |
|
(3.1 |
) |
pts. |
|
82.6 |
% |
|
|
81.5 |
% |
|
1.1 |
|
pts. |
Aircraft utilization (hours per day) |
|
10.5 |
|
|
|
10.2 |
|
|
2.5 |
|
|
|
10.9 |
|
|
|
10.1 |
|
|
7.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average fare |
$ |
211.83 |
|
|
$ |
216.20 |
|
|
(2.0 |
) |
|
$ |
211.79 |
|
|
$ |
217.03 |
|
|
(2.4 |
) |
|
Yield per passenger mile (cents) |
|
15.89 |
|
|
|
16.55 |
|
|
(4.0 |
) |
|
|
15.92 |
|
|
|
16.34 |
|
|
(2.6 |
) |
|
Passenger revenue per ASM (cents) |
|
12.73 |
|
|
|
13.76 |
|
|
(7.5 |
) |
|
|
13.15 |
|
|
|
13.32 |
|
|
(1.2 |
) |
|
Operating revenue per ASM (cents) |
|
13.67 |
|
|
|
14.66 |
|
|
(6.8 |
) |
|
|
14.04 |
|
|
|
14.20 |
|
|
(1.2 |
) |
|
Operating expense per ASM (cents) |
|
14.06 |
|
|
|
14.40 |
|
|
(2.4 |
) |
|
|
14.37 |
|
|
|
14.67 |
|
|
(2.0 |
) |
|
Operating expense per ASM, excluding fuel
|
|
9.82 |
|
|
|
9.13 |
|
|
7.6 |
|
|
|
10.02 |
|
|
|
9.59 |
|
|
4.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Departures |
|
84,730 |
|
|
|
86,046 |
|
|
(1.5 |
) |
|
|
347,218 |
|
|
|
332,699 |
|
|
4.4 |
|
|
Average stage length (miles) |
|
1,252 |
|
|
|
1,109 |
|
|
12.9 |
|
|
|
1,230 |
|
|
|
1,213 |
|
|
1.4 |
|
|
Average number of operating aircraft during
|
|
284 |
|
|
|
288 |
|
|
(1.5 |
) |
|
|
282 |
|
|
|
285 |
|
|
(1.1 |
) |
|
Average fuel cost per gallon, including fuel
|
$ |
3.08 |
|
|
$ |
3.70 |
|
|
(16.8 |
) |
|
$ |
3.03 |
|
|
$ |
3.69 |
|
|
(17.9 |
) |
|
Fuel gallons consumed (millions) |
|
220 |
|
|
|
216 |
|
|
2.0 |
|
|
|
897 |
|
|
|
842 |
|
|
6.5 |
|
|
Average number of full-time equivalent
|
|
20,411 |
|
|
|
20,016 |
|
|
2.0 |
|
|
|
20,632 |
|
|
|
20,075 |
|
|
2.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) Refer to Note A at the end of our Earnings Release for more information on this non-GAAP financial measure. |
||||||||||||||||||||||
JETBLUE AIRWAYS CORPORATION |
|||||
SELECTED CONSOLIDATED BALANCE SHEET DATA |
|||||
(in millions) |
|||||
|
December 31, 2023 |
|
December 31, 2022 |
||
|
(unaudited) |
|
|
||
Cash and cash equivalents |
$ |
1,166 |
|
$ |
1,042 |
Total investment securities |
|
564 |
|
|
522 |
Total assets |
|
13,853 |
|
|
13,045 |
Total debt |
|
4,716 |
|
|
3,647 |
Stockholders' equity |
|
3,337 |
|
|
3,563 |
Note A - Non-GAAP Financial Measures
We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Earnings Release. Non-GAAP financial measures are financial measures that are derived from the consolidated financial statements, but that are not presented in accordance with GAAP. We present these non-GAAP financial measures because we believe they provide useful supplemental information that enables a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides an explanation of each non-GAAP financial measure used in this Earnings Release and shows a reconciliation of certain non-GAAP financial measures used in this Earnings Release to the most directly comparable GAAP financial measures.
With respect to JetBlue’s CASM Ex-Fuel (1) and Adjusted Operating Margin Guidance (2), JetBlue is not able to provide a reconciliation of forward-looking measures where the quantification of certain excluded items reflected in the measure cannot be calculated or predicted at this time without unreasonable efforts. In these cases, the reconciling information that is unavailable includes a forward-looking range of financial performance measures beyond our control, such as fuel costs, which are subject to many economic and political factors beyond our control. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results.
(1) CASM Ex-Fuel is a non-GAAP measure that excludes fuel, related taxes, hedges and other non-airline operating expenses, and special items.
(2) Adjusted Operating Margin is a non-GAAP measure that excludes special items.
Operating expense per available seat mile, excluding fuel and related taxes, other non-airline operating expenses, and special items (“CASM ex-fuel”)
CASM is a common metric used in the airline industry. Our CASM for the relevant periods are summarized in the table below. We exclude aircraft fuel and related taxes, operating expenses related to other non-airline businesses, such as JetBlue Ventures and JetBlue Travel Products, and special items from total operating expenses to determine Operating expenses ex-fuel, which is a non-GAAP financial measure, and we exclude the same items from CASM to determine CASM ex-fuel, which is also a non-GAAP financial measure. We believe the impact of these special items distorts our overall trends and our metrics are more comparable with the presentation of our results excluding such impact.
Special items for 2023 include Spirit costs and union contract costs.
Special items for 2022 included Spirit costs, union contract costs and Embraer E190 fleet transition costs.
We believe Operating Expenses ex-fuel and CASM ex-fuel are useful for investors because they provide investors the ability to measure our financial performance excluding items that are beyond our control, such as fuel costs, which are subject to many economic and political factors, as well as items that are not related to the generation of an available seat mile, such as operating expense related to certain non-airline businesses and special items. We believe these non-GAAP measures are more indicative of our ability to manage airline costs and are more comparable to measures reported by other major airlines.
The table below provides a reconciliation of our total operating expenses (“GAAP measure”) to Operating Expenses ex-fuel, and our CASM to CASM ex-fuel for the periods presented.
NON-GAAP FINANCIAL MEASURE |
|||||||||||||||||||||
RECONCILIATION OF OPERATING EXPENSE AND OPERATING EXPENSE PER ASM, EXCLUDING FUEL |
|||||||||||||||||||||
($ in millions, per ASM data in cents) |
|||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||||
|
$ |
|
per
|
|
$ |
|
per
|
|
$ |
|
per
|
|
$ |
|
per
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total operating expenses |
$ |
2,392 |
|
14.06 |
|
|
$ |
2,372 |
|
14.40 |
|
$ |
9,845 |
|
14.37 |
|
|
$ |
9,456 |
|
14.67 |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aircraft fuel and related taxes |
|
677 |
|
3.98 |
|
|
|
800 |
|
4.86 |
|
|
2,720 |
|
3.97 |
|
|
|
3,105 |
|
4.82 |
Other non-airline expenses |
|
14 |
|
0.09 |
|
|
|
11 |
|
0.07 |
|
|
64 |
|
0.09 |
|
|
|
55 |
|
0.08 |
Special items |
|
29 |
|
0.17 |
|
|
|
57 |
|
0.34 |
|
|
197 |
|
0.29 |
|
|
|
113 |
|
0.18 |
Operating expenses, excluding fuel |
$ |
1,672 |
|
9.82 |
|
|
$ |
1,504 |
|
9.13 |
|
$ |
6,864 |
|
10.02 |
|
|
$ |
6,183 |
|
9.59 |
Percent change |
|
|
7.6 |
% |
|
|
|
|
|
|
|
4.5 |
% |
|
|
|
|
||||
Operating Expense, Operating Income (Loss), Adjusted Operating Margin, Pre-tax Income (Loss), Adjusted Pre-tax Margin, Net Income (Loss) and Earnings (Loss) per Share, excluding Special Items and Net Gain (Loss) on Investments
Our GAAP results in the applicable periods were impacted by credits and charges that were deemed special items.
Special items for 2023 include Spirit costs and union contract costs.
Special items for 2022 included Spirit costs, union contract costs and Embraer E190 fleet transition costs.
Certain gains and losses on our investments were also excluded from our 2023 and 2022 GAAP results.
We believe the impact of these items distort our overall trends and our metrics are more comparable with the presentation of our results excluding the impact of these items. The table below provides a reconciliation of our GAAP reported amounts to the non-GAAP amounts excluding the impact of these items for the periods presented.
NON-GAAP FINANCIAL MEASURE |
|||||||||||||||
RECONCILIATION OF OPERATING EXPENSE, OPERATING INCOME (LOSS), ADJUSTED OPERATING
|
|||||||||||||||
(unaudited, in millions) |
|||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Total operating revenues |
$ |
2,325 |
|
|
$ |
2,415 |
|
|
$ |
9,615 |
|
|
$ |
9,158 |
|
|
|
|
|
|
|
|
|
||||||||
RECONCILIATION OF OPERATING EXPENSE |
|
|
|
|
|
|
|
||||||||
Total operating expenses |
$ |
2,392 |
|
|
$ |
2,372 |
|
|
$ |
9,845 |
|
|
$ |
9,456 |
|
Less: Special items |
|
29 |
|
|
|
57 |
|
|
|
197 |
|
|
|
113 |
|
Total operating expenses excluding special items |
$ |
2,363 |
|
|
$ |
2,315 |
|
|
$ |
9,648 |
|
|
$ |
9,343 |
|
|
|
|
|
|
|
|
|
||||||||
RECONCILIATION OF OPERATING INCOME (LOSS) |
|
|
|
|
|
|
|||||||||
Operating income (loss) |
$ |
(67 |
) |
|
$ |
43 |
|
|
$ |
(230 |
) |
|
$ |
(298 |
) |
Add back: Special items |
|
29 |
|
|
|
57 |
|
|
|
197 |
|
|
|
113 |
|
Operating income (loss) excluding special items |
$ |
(38 |
) |
|
$ |
100 |
|
|
$ |
(33 |
) |
|
$ |
(185 |
) |
|
|
|
|
|
|
|
|
||||||||
RECONCILIATION OF ADJUSTED OPERATING MARGIN |
|
|
|
|
|
|
|||||||||
Operating margin |
|
(2.9 |
) % |
|
|
1.8 |
% |
|
|
(2.4 |
) % |
|
|
(3.3 |
) % |
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) excluding special items |
$ |
(38 |
) |
|
$ |
100 |
|
|
$ |
(33 |
) |
|
$ |
(185 |
) |
Total operating revenues |
|
2,325 |
|
|
|
2,415 |
|
|
|
9,615 |
|
|
|
9,158 |
|
Adjusted operating margin |
|
(1.6 |
) % |
|
|
4.1 |
% |
|
|
(0.3 |
) % |
|
|
(2.0 |
) % |
|
|
|
|
|
|
|
|
||||||||
RECONCILIATION OF PRE-TAX INCOME (LOSS) |
|
|
|
|
|
|
|||||||||
Income (loss) before income taxes |
$ |
(110 |
) |
|
$ |
7 |
|
|
$ |
(334 |
) |
|
$ |
(437 |
) |
Add back: Special items |
|
29 |
|
|
|
57 |
|
|
|
197 |
|
|
|
113 |
|
Less: Net gain (loss) on investments |
|
3 |
|
|
|
(5 |
) |
|
|
9 |
|
|
|
(9 |
) |
Income (loss) before income taxes excluding special items
|
$ |
(84 |
) |
|
$ |
69 |
|
|
$ |
(146 |
) |
|
$ |
(315 |
) |
|
|
|
|
|
|
|
|
||||||||
RECONCILIATION OF ADJUSTED PRE-TAX MARGIN |
|
|
|
|
|
|
|||||||||
Pre-tax margin |
|
(4.7 |
) % |
|
|
0.3 |
% |
|
|
(3.5 |
) % |
|
|
(4.8 |
) % |
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes excluding special items
|
$ |
(84 |
) |
|
$ |
69 |
|
|
$ |
(146 |
) |
|
$ |
(315 |
) |
Total operating revenues |
|
2,325 |
|
|
|
2,415 |
|
|
|
9,615 |
|
|
|
9,158 |
|
Adjusted pre-tax margin |
|
(3.6 |
) % |
|
|
2.8 |
% |
|
|
(1.5 |
) % |
|
|
(3.4 |
) % |
|
|
|
|
|
|
|
|
||||||||
RECONCILIATION OF NET INCOME (LOSS) |
|
|
|
|
|
|
|||||||||
Net loss |
$ |
(104 |
) |
|
$ |
24 |
|
|
$ |
(310 |
) |
|
$ |
(362 |
) |
Add back: Special items |
|
29 |
|
|
|
57 |
|
|
|
197 |
|
|
|
113 |
|
Less: Income tax benefit (expense) related to special items |
|
(15 |
) |
|
|
13 |
|
|
|
31 |
|
|
|
19 |
|
Less: Net gain (loss) on investments |
|
3 |
|
|
|
(5 |
) |
|
|
9 |
|
|
|
(9 |
) |
Less: Income tax benefit (expense) related to net gain
|
|
— |
|
|
|
1 |
|
|
|
(2 |
) |
|
|
1 |
|
Net loss excluding special items and net gain (loss) on
|
$ |
(63 |
) |
|
$ |
72 |
|
|
$ |
(151 |
) |
|
$ |
(260 |
) |
NON-GAAP FINANCIAL MEASURE |
|||||||||||||||
RECONCILIATION OF OPERATING EXPENSE, OPERATING INCOME (LOSS), ADJUSTED OPERATING
|
|||||||||||||||
(unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
CALCULATION OF EARNINGS (LOSS) PER
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Earnings (loss) per common share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.31 |
) |
|
$ |
0.07 |
|
|
$ |
(0.93 |
) |
|
$ |
(1.12 |
) |
Add back: Special items |
|
0.09 |
|
|
|
0.17 |
|
|
|
0.59 |
|
|
|
0.35 |
|
Less: Income tax benefit (expense) related to special items |
|
(0.04 |
) |
|
|
0.03 |
|
|
|
0.09 |
|
|
|
0.06 |
|
Less: Net gain (loss) on investments |
|
0.01 |
|
|
|
(0.01 |
) |
|
|
0.03 |
|
|
|
(0.03 |
) |
Less: Income tax benefit (expense) related to net gain
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
Basic excluding special items and net gain (loss) on
|
$ |
(0.19 |
) |
|
$ |
0.22 |
|
|
$ |
(0.45 |
) |
|
$ |
(0.80 |
) |
|
|
|
|
|
|
|
|
||||||||
Diluted |
$ |
(0.31 |
) |
|
$ |
0.07 |
|
|
$ |
(0.93 |
) |
|
$ |
(1.12 |
) |
Add back: Special items |
|
0.09 |
|
|
|
0.17 |
|
|
|
0.59 |
|
|
|
0.35 |
|
Less: Income tax benefit (expense) related to special items |
|
(0.04 |
) |
|
|
0.03 |
|
|
|
0.09 |
|
|
|
0.06 |
|
Less: Net gain (loss) on investments |
|
0.01 |
|
|
|
(0.01 |
) |
|
|
0.03 |
|
|
|
(0.03 |
) |
Less: Income tax benefit (expense) related to net gain
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
Diluted excluding special items and net gain (loss) on
|
$ |
(0.19 |
) |
|
$ |
0.22 |
|
|
$ |
(0.45 |
) |
|
$ |
(0.80 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240130017119/en/
JetBlue Investor Relations
Tel: +1 718 709 2202
ir@jetblue.com
JetBlue Corporate Communications
Tel: +1 718 709 3089
corpcomm@jetblue.com
Source: JetBlue
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