JetBlue Announces Second Quarter 2022 Results
JetBlue Airways Corporation (NASDAQ: JBLU) reported a GAAP loss per share of ($0.58) for Q2 2022, compared to earnings of $0.59 in Q2 2019. Revenue rose 16.1% year-over-year, driven by strong demand. Operating expenses increased 34.7%, impacting margins. JetBlue announced plans to acquire Spirit Airlines for $3.8 billion, aiming to enhance market competition with greater operational efficiency. A new cost program targets $150-$200 million in savings by 2024. Despite challenges, JetBlue anticipates improved profitability in Q3.
- Revenue increased 16.1% year-over-year, exceeding initial guidance.
- JetBlue's merger with Spirit Airlines valued at $3.8 billion expected to create significant synergies.
- New structural cost program aims to deliver $150-$200 million in savings by 2024.
- Operational performance improved with completion rates above 98% in May and June.
- GAAP loss per share of ($0.58) compared to earnings of $0.59 in Q2 2019.
- Operating expenses per available seat mile increased by 34.7%, affecting margins.
- Projected CASM ex-Fuel increase of 15-17% for Q3 2022, indicating rising operational costs.
JetBlue Announces Record Revenues and Launches New Structural Cost Program Targeting Efficiencies in Network and Operation, Expected to Drive Shareholder Value
-
Reported GAAP loss per share of (
$0.58 $0.59 $0.47 $0.60 -
GAAP pre-tax loss of
( in the second quarter of 2022, compared to a pre-tax income of$151) million $236 million ( (1) in the second quarter of 2022 versus adjusted pre-tax income of$102) million $238 million
Operational and Financial Highlights from the Second Quarter
-
Capacity increased by
2.3% year over three, compared to our guidance for capacity to increase2% to3% year over three. -
Revenue increased
16.1% year over three, compared to our guidance of an increase of16% or above, year over three. Revenue was better than the high-end of our initial outlook as a result of robust demand across the network with a record number of Customers. -
Operating expenses per available seat mile increased
34.7% year over three. Operating expenses per available seat mile, excluding fuel and special items (CASM ex-fuel) (1) increased14.5% (1) year over three, compared to our guidance of a15% to17% increase year over three.
Balance Sheet and Liquidity
-
As of
June 30, 2022 , JetBlue’s adjusted debt to capital ratio was54% (1). -
JetBlue ended the second quarter of 2022 with approximately$2.6 billion 32% of 2019 revenue. This excludes our$550 million -
JetBlue paid down approximately$106 million
Fuel Expense and Hedging
-
The realized fuel price in the second quarter 2022 was
$4.24 97% increase versus second quarter 2019 realized fuel price of$2.16 -
As of
August 2, 2022 ,JetBlue has not entered into forward fuel derivative contracts to hedge its fuel consumption for the third quarter of 2022. Based on the forward curve as ofJuly 22, 2022 ,JetBlue expects an average all-in price per gallon of fuel of$3.68
Creating a National Low-Fare Challenger to the
-
On
July 28, 2022 ,JetBlue and Spirit Airlines, Inc. (“Spirit”) announced that their boards of directors approved a definitive merger agreement under whichJetBlue will acquire Spirit for$33.50 $2.50 $0.10 January 2023 through closing, for an aggregate fully diluted equity value of$3.8 billion $7.6 billion -
This combination increases JetBlue’s relevance and offers consumers more choices by leveraging the airlines’ complementary networks and fleets. The airline will offer its combined 77 million customers more options and choices and will accelerate JetBlue’s organic growth plan with 1,700+ daily flights to more than 125 destinations in 30 countries based on
December 2022 schedules. The combined airline will have a fleet of 458 aircraft on a pro forma basis and an order book of over 300 Airbus aircraft -
JetBlue expects to achieve$600 -700 millionJetBlue expects the transaction to be significantly accretive to earnings per share in the first full year following closing. The company also expects to maintain balance sheet flexibility with post-transaction leverage of 3.0-3.5x, well inside historical levels, and to continue its deleveraging trajectory as it captures synergies.
Delivering Significant Growth and Consumer Benefits Through the
-
While the industry has yet to return capacity to 2019 levels, the
Northeast Alliance (NEA) is growing well in excess of the U.S. market. The NEA added over 50 new routes, and increased frequencies on another 130 routes. Collectively with American,JetBlue is now offering more service inNew York than the other two legacy carriers. -
The NEA growth is delivering tremendous consumer benefits, enabling
JetBlue to offer more customers an award-winning combination of low fares and great service, while simultaneously eliciting a strong competitive response from other carriers. -
Through the NEA,
JetBlue is able to serve a broader set of customers, including business travelers, fly to more markets, and create thousands of jobs in the process.
Accelerating Retirement of E190 Fleet and Pulling Forward Fleet Modernization Plans
-
When we reset our medium-term capacity plan back in the spring to reflect our industry’s output constraints, we highlighted some potential mitigating actions to optimize our footprint for this new reality. Today,
JetBlue announced the acceleration of its E190 retirement schedule, pulling it forward by over a year to mid 2025 versus prior plans to exit the fleet by year-end 2026. -
JetBlue currently has a sizable A220 orderbook, with 100 total A220s either in the airline’s fleet or on order following a recently revised agreement announced earlier this year. -
Expediting the transition towards A220s and our fleet modernization plans will result in meaningful cost avoidance. We expect to save at least
$75 million 35% less fuel per seat. We do not expect any impact to our near-term capacity plans as a result of the updated fleet transition plan. - A220s enable greater flexibility with efficiency across different range profiles, supporting our network strategy, as well as our leadership in reducing carbon emissions.
Setting a
- Following a review of JetBlue’s optimal long-term cost structure, we announced the launch of a new program focused on operational and planning efficiencies. During the second quarter, we announced the creation of a new Enterprise Planning team to help unlock structural efficiencies across the airline longer-term.
-
JetBlue is also investing in automation across the business, particularly in support of end-of-life maintenance planning as we begin to retire aircraft for the first time in our history. -
We expect this new program to deliver run-rate cost savings of approximately
$150 million $200 million -
The structural cost program and the accelerated E190 retirements is expected to drive a total of approximately
$250 million
Building Back to Sustained Profitability
“I’m very pleased we found a path forward with Spirit, and we can’t wait to welcome their incredible 10,000 Team Members to
“We reported a record-breaking revenue result for the second quarter, and we’re on pace to top it again here in the third quarter and drive our first quarterly profit since the start of the pandemic.
I’m proud to say that our operational performance improved significantly through the quarter, and we capitalized on the strong demand environment to deliver revenue growth above the top-end of our original guidance range. We’ve entered the third quarter with some solid momentum that we expect to carry through to a sustained profit inflection.
While high fuel prices and our short-term operational investments are weighing on our margins this summer, we’re making steady underlying progress on our long-term initiatives to structurally improve our profitability and enhance our long-term earnings power.”
Revenue and Capacity
“We took decisive action last quarter to reduce our full-year capacity plan by 10 points and build greater resiliency into the operation, and we have seen good returns – we closed May and June with a completion factor above
“For the third quarter, we expect capacity to be flat to negative 3 percent year over three, which remains above legacy carriers yet more cautious compared to ULCC growth. For the full-year 2022, we are tightening our forecast for capacity to grow between 0 and 3 percent versus 2019.
For the third quarter, we expect unit revenue to increase between 19 and 23 percent, to the highest absolute levels in our history as strong demand combined with a tight supply backdrop help offset the high price of fuel. Revenue is tracking well to help deliver a profitable quarter, and early bookings keep us cautiously optimistic about the fall.”
Financial Performance and Outlook
“I’m very pleased with the team’s execution this quarter to position us to return to sustained profitability in the back half of the year. Despite the operational headwinds in April, the subsequent operational investments we made, and the sharp rise in fuel prices throughout the quarter, we exited Q2 with an adjusted pre-tax profit for the month of June, and we look forward to carrying this momentum into Q3 and beyond,” said
“For the third quarter, we are forecasting CASM ex-Fuel(4) to increase 15 to 17 percent. We’re also tightening our forecast for full-year 2022 CASM ex-Fuel(4) to increase in the range of 11 to 14 percent versus 2019. We expect the heightened level of operational investments to normalize once we get beyond the summer peak. As a result, we expect to see some productivity improvement into the fourth quarter and 2023.
We’re embarking on a new plan to keep our costs low, focused on cross-functional costs and applying best practices with respect to operational and planning efficiencies. Through the strong underlying momentum in the business and the continued execution of our various strategic initiatives – from the
Earnings Call Details
For further details see the Second Quarter 2022 Earnings Presentation available via the internet at http://investor.jetblue.com.
About
Notes
| (1) |
Non-GAAP financial measure; Note A provides a reconciliation of non-GAAP financial measures used in this release and explains the reasons management believes that presentation of these non-GAAP financial measure provides useful information to investors regarding |
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| (2) |
Based on total consideration of |
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| (3) |
Includes adjusted net debt of |
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| (4) |
With respect to JetBlue’s CASM ex-fuel guidance, |
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Forward-Looking Statements
This Earnings Release (or otherwise made by
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. In light of these risks and uncertainties, the forward-looking events discussed in this Earnings Release might not occur. Our forward-looking statements speak only as of the date of this Earnings Release. Other than as required by law, we undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.
This Earnings Release also includes certain “non-GAAP financial measures” as defined under the Exchange Act and in accordance with Regulation G. We have included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and provided in accordance with
Additional Information and Where to Find It
Participants in the Solicitation
This Earnings Release is neither a solicitation of a proxy nor a substitute for any proxy statement or other filings that may be made with the
No Offer or Solicitation
This Earnings Release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| Percent | Percent | ||||||||||||||||||||||||||
|
2022 |
|
|
2021 |
|
Change |
|
2022 |
|
|
2021 |
|
Change | ||||||||||||||
| OPERATING REVENUES | |||||||||||||||||||||||||||
| Passenger | $ |
2,302 |
|
$ |
1,388 |
|
65.8 |
|
$ |
3,904 |
|
$ |
2,058 |
|
89.7 |
|
|||||||||||
| Other |
|
143 |
|
|
111 |
|
29.6 |
|
|
277 |
|
|
174 |
|
59.2 |
|
|||||||||||
| Total operating revenues |
|
2,445 |
|
|
1,499 |
|
63.1 |
|
|
4,181 |
|
|
2,232 |
|
87.4 |
|
|||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||||||||
| Aircraft fuel and related taxes |
|
910 |
|
|
336 |
|
170.7 |
|
|
1,481 |
|
|
530 |
|
179.6 |
|
|||||||||||
| Salaries, wages and benefits |
|
695 |
|
|
577 |
|
20.4 |
|
|
1,383 |
|
|
1,098 |
|
25.9 |
|
|||||||||||
| Landing fees and other rents |
|
149 |
|
|
174 |
|
(14.4 |
) |
|
281 |
|
|
289 |
|
(2.8 |
) |
|||||||||||
| Depreciation and amortization |
|
145 |
|
|
133 |
|
8.4 |
|
|
288 |
|
|
258 |
|
11.6 |
|
|||||||||||
| Aircraft rent |
|
27 |
|
|
26 |
|
5.0 |
|
|
53 |
|
|
50 |
|
4.6 |
|
|||||||||||
| Sales and marketing |
|
78 |
|
|
47 |
|
65.1 |
|
|
135 |
|
|
70 |
|
93.4 |
|
|||||||||||
| Maintenance, materials and repairs |
|
162 |
|
|
164 |
|
(1.3 |
) |
|
313 |
|
|
268 |
|
17.0 |
|
|||||||||||
| Other operating expenses |
|
348 |
|
|
261 |
|
33.6 |
|
|
683 |
|
|
471 |
|
45.0 |
|
|||||||||||
| Special items |
|
44 |
|
|
(366 |
) |
(112.1 |
) |
|
44 |
|
|
(655 |
) |
106.8 |
|
|||||||||||
| Total operating expenses |
|
2,558 |
|
|
1,352 |
|
89.2 |
|
|
4,661 |
|
|
2,379 |
|
95.9 |
|
|||||||||||
| OPERATING INCOME (LOSS) |
|
(113 |
) |
|
147 |
|
(176.7 |
) |
|
(480 |
) |
|
(147 |
) |
226.3 |
|
|||||||||||
| Operating margin |
|
-4.6 |
% |
|
9.8 |
% |
(14.4 |
) |
pts |
|
-11.5 |
% |
|
-6.6 |
% |
(4.9 |
) |
pts | |||||||||
| OTHER INCOME (EXPENSE) | |||||||||||||||||||||||||||
| Interest expense |
|
(40 |
) |
|
(54 |
) |
(26.2 |
) |
|
(77 |
) |
|
(112 |
) |
(31.1 |
) |
|||||||||||
| Interest income |
|
8 |
|
|
4 |
|
85.6 |
|
|
12 |
|
|
8 |
|
51.3 |
|
|||||||||||
| Gain (loss) on investments, net |
|
(5 |
) |
|
(1 |
) |
374.4 |
|
|
(4 |
) |
|
3 |
|
(222.9 |
) |
|||||||||||
| Other |
|
(1 |
) |
|
(39 |
) |
(97.1 |
) |
|
- |
|
|
(42 |
) |
(99.8 |
) |
|||||||||||
| Total other income (expense) |
|
(38 |
) |
|
(90 |
) |
(58.0 |
) |
|
(69 |
) |
|
(143 |
) |
(51.8 |
) |
|||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES |
|
(151 |
) |
|
57 |
|
(367.0 |
) |
|
(549 |
) |
|
(290 |
) |
89.1 |
|
|||||||||||
| Pre-tax margin |
|
-6.2 |
% |
|
3.8 |
% |
(10.0 |
) |
pts |
|
-13.1 |
% |
|
-13.0 |
% |
(0.1 |
) |
pts | |||||||||
| Income tax (benefit) |
|
37 |
|
|
(7 |
) |
(638.9 |
) |
|
(106 |
) |
|
(107 |
) |
(1.1 |
) |
|||||||||||
| NET INCOME (LOSS) | $ |
(188 |
) |
$ |
64 |
|
(396.5 |
) |
$ |
(443 |
) |
$ |
(183 |
) |
148.1 |
|
|||||||||||
| EARNINGS (LOSS) PER COMMON SHARE: | |||||||||||||||||||||||||||
| Basic | $ |
(0.58 |
) |
$ |
0.20 |
|
$ |
(1.38 |
) |
$ |
(0.58 |
) |
|||||||||||||||
| Diluted | $ |
(0.58 |
) |
$ |
0.20 |
|
$ |
(1.38 |
) |
$ |
(0.58 |
) |
|||||||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING: | |||||||||||||||||||||||||||
| Basic |
|
323.1 |
|
|
317.7 |
|
|
321.9 |
|
|
317.0 |
|
|||||||||||||||
| Diluted |
|
323.1 |
|
|
321.5 |
|
|
321.9 |
|
|
317.0 |
|
|||||||||||||||
| COMPARATIVE OPERATING STATISTICS | |||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| Percent | Percent | ||||||||||||||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
Change |
|
|
|
2022 |
|
|
|
2021 |
|
|
Change |
||||||||
| Revenue passengers (thousands) |
|
10,396 |
|
|
7,938 |
|
31.0 |
|
|
18,573 |
|
|
12,401 |
|
49.8 |
|
|||||||||||
| Revenue passenger miles (millions) |
|
13,967 |
|
|
10,804 |
|
29.3 |
|
|
24,893 |
|
|
16,611 |
|
49.9 |
|
|||||||||||
| Available seat miles (ASMs) (millions) |
|
16,405 |
|
|
13,645 |
|
20.2 |
|
|
31,788 |
|
|
22,734 |
|
39.8 |
|
|||||||||||
| Load factor |
|
85.1 |
% |
|
79.2 |
% |
5.9 |
|
pts. |
|
78.3 |
% |
|
73.1 |
% |
5.2 |
|
pts. | |||||||||
| Aircraft utilization (hours per day) |
|
10.4 |
|
|
8.8 |
|
24.1 |
|
|
10.2 |
|
|
7.4 |
|
37.8 |
|
|||||||||||
| Average fare | $ |
221.38 |
|
$ |
174.90 |
|
26.6 |
|
$ |
210.20 |
|
$ |
165.93 |
|
26.7 |
|
|||||||||||
| Yield per passenger mile (cents) |
|
16.48 |
|
|
12.82 |
|
28.5 |
|
|
15.68 |
|
|
12.39 |
|
26.6 |
|
|||||||||||
| Passenger revenue per ASM (cents) |
|
14.03 |
|
|
10.18 |
|
34.9 |
|
|
12.28 |
|
|
9.05 |
|
35.7 |
|
|||||||||||
| Revenue per ASM (cents) |
|
14.90 |
|
|
10.99 |
|
35.7 |
|
|
13.15 |
|
|
9.82 |
|
34.0 |
|
|||||||||||
| Operating expense per ASM (cents) |
|
15.59 |
|
|
9.91 |
|
57.4 |
|
|
14.66 |
|
|
10.46 |
|
40.1 |
|
|||||||||||
| Operating expense per ASM, excluding fuel (cents)(1) |
|
9.68 |
|
|
10.05 |
|
(3.6 |
) |
|
9.77 |
|
|
10.92 |
|
(10.6 |
) |
|||||||||||
| Departures |
|
83,455 |
|
|
67,253 |
|
24.1 |
|
|
161,848 |
|
|
111,302 |
|
45.4 |
|
|||||||||||
| Average stage length (miles) |
|
1,233 |
|
|
1,279 |
|
(3.6 |
) |
|
1,232 |
|
|
1,278 |
|
(3.6 |
) |
|||||||||||
| Average number of operating aircraft during period |
|
283 |
|
|
269 |
|
5.3 |
|
|
283 |
|
|
268 |
|
5.4 |
|
|||||||||||
| Average fuel cost per gallon, including fuel taxes | $ |
4.24 |
|
$ |
1.91 |
|
121.6 |
|
$ |
3.60 |
|
$ |
1.84 |
|
95.7 |
|
|||||||||||
| Fuel gallons consumed (millions) |
|
215 |
|
|
176 |
|
22.2 |
|
|
411 |
|
|
288 |
|
42.8 |
|
|||||||||||
| Average number of full-time equivalent crewmembers |
|
19,868 |
|
|
15,416 |
|
28.9 |
|
|||||||||||||||||||
| (1) Refer to Note A at the end of our Earnings Release for more information on this non-GAAP financial measure. Operating expense per available seat mile, excluding fuel (“CASM Ex-Fuel”) excludes fuel and related taxes, other non-airline operating expenses, and special items. |
| SELECTED CONSOLIDATED BALANCE SHEET DATA | ||||||||
| (in millions) | ||||||||
2022 |
2021 |
|||||||
| (unaudited) | ||||||||
| Cash and cash equivalents | $ |
1,611 |
$ |
2,018 |
||||
| Total investment securities |
|
993 |
|
863 |
||||
| Total assets |
|
13,543 |
|
13,642 |
||||
| Total debt |
|
3,822 |
|
4,006 |
||||
| Stockholders' equity |
|
3,446 |
|
3,849 |
||||
Note A – Non-GAAP Financial Measures
Operating expense per available seat mile, excluding fuel and related taxes, other non-airline operating expenses, and special items (“CASM Ex-Fuel”)
Operating expenses per available seat mile, or CASM, is a common metric used in the airline industry. We exclude aircraft fuel and related taxes, operating expenses related to other non-airline businesses, such as
For the three and six months ended
Special items for the three and six months ended
We believe that CASM ex-fuel is useful for investors because it provides investors the ability to measure financial performance excluding items beyond our control, such as fuel costs, which are subject to many economic and political factors, or not related to the generation of an available seat mile, such as operating expense related to certain non-airline businesses. We believe this non-GAAP measure is more indicative of our ability to manage airline costs and is more comparable to measures reported by other major airlines.
With respect to JetBlue’s CASM ex-fuel guidance,
| NON-GAAP FINANCIAL MEASURE | |||||||||||||||||||||||||||
| RECONCILIATION OF OPERATING EXPENSE PER ASM, EXCLUDING FUEL | |||||||||||||||||||||||||||
| ($ in millions, per ASM data in cents) | |||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
2022 |
|
2019 |
|
2022 |
|
2019 |
|||||||||||||||||||||
| $ | per ASM | $ | per ASM | $ | per ASM | $ | per ASM | ||||||||||||||||||||
| Total operating expenses | $ |
2,558 |
$ |
15.59 |
$ |
1,855 |
$ |
11.58 |
$ |
4,661 |
$ |
14.66 |
$ |
3,652 |
$ |
11.60 |
|||||||||||
| Less: | |||||||||||||||||||||||||||
| Aircraft fuel and related taxes |
|
910 |
|
5.55 |
|
484 |
|
3.02 |
|
1,481 |
|
4.66 |
|
921 |
|
2.93 |
|||||||||||
| Other non-airline expenses |
|
14 |
|
0.08 |
|
12 |
|
0.09 |
|
29 |
|
0.09 |
|
23 |
|
0.07 |
|||||||||||
| Special items |
|
44 |
|
0.27 |
|
2 |
|
0.01 |
|
44 |
|
0.14 |
|
14 |
|
0.04 |
|||||||||||
| Operating expenses, excluding fuel | $ |
1,590 |
$ |
9.69 |
$ |
1,357 |
$ |
8.46 |
$ |
3,107 |
$ |
9.77 |
$ |
2,694 |
$ |
8.56 |
|||||||||||
Operating expense, (loss) income before taxes, net (loss) income and (loss) earnings per share, excluding special items and net gain on investments
Our GAAP results in the applicable periods were impacted by charges that are deemed special items.
For the three and six months ended
Special items for the three and six months ended
Mark-to-market and certain gains and losses on our investments were also excluded from our 2022 GAAP results.
We believe the impact of these items distort our overall trends and that 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.
| NON-GAAP FINANCIAL MEASURE | ||||||||||||||||
| RECONCILIATION OF OPERATING EXPENSE, (LOSS) INCOME BEFORE TAXES, NET (LOSS) INCOME, AND (LOSS) EARNINGS PER SHARE EXCLUDING SPECIAL ITEMS AND |
||||||||||||||||
(in millions, except per share amounts) |
||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
|
2022 |
|
|
|
2019 |
|
|
|
2022 |
|
|
|
2019 |
|
||
| Total operating revenues | $ |
2,445 |
|
$ |
2,105 |
|
$ |
4,181 |
|
$ |
3,977 |
|
||||
| Total operating expenses | $ |
2,558 |
|
$ |
1,855 |
|
$ |
4,661 |
|
$ |
3,652 |
|
||||
| Less: Special items |
|
44 |
|
|
2 |
|
|
44 |
|
|
14 |
|
||||
| Total operating expenses excluding special items | $ |
2,514 |
|
$ |
1,853 |
|
$ |
4,617 |
|
$ |
3,638 |
|
||||
| Operating (loss) income | $ |
(113 |
) |
$ |
250 |
|
$ |
(480 |
) |
$ |
325 |
|
||||
| Add back: Special items |
|
44 |
|
|
2 |
|
|
44 |
|
|
14 |
|
||||
| Operating (loss) income excluding special items | $ |
(69 |
) |
$ |
252 |
|
$ |
(436 |
) |
$ |
339 |
|
||||
| Operating margin excluding special items |
|
-2.8 |
% |
|
-12.0 |
% |
|
-10.4 |
% |
|
8.5 |
% |
||||
| (Loss) income before income taxes | $ |
(151 |
) |
$ |
236 |
|
$ |
(549 |
) |
$ |
294 |
|
||||
| Add back: Special items |
|
44 |
|
|
2 |
|
|
44 |
|
|
14 |
|
||||
| Less: Net gain (loss) on investments |
|
(5 |
) |
|
- |
|
|
(4 |
) |
|
- |
|
||||
| (Loss) income before income taxes excluding special items and net gain (loss) on investments | $ |
(102 |
) |
$ |
238 |
|
$ |
(501 |
) |
$ |
308 |
|
||||
| Pre-tax margin excluding special items and net gain (loss) on investments |
|
-4.2 |
% |
|
11.3 |
% |
|
-12.0 |
% |
|
7.8 |
% |
||||
| Net (loss) income | $ |
(188 |
) |
$ |
179 |
|
$ |
(443 |
) |
$ |
221 |
|
||||
| Add back: Special items |
|
44 |
|
|
2 |
|
|
44 |
|
|
14 |
|
||||
| Less: Income tax (expense) benefit related to special items |
|
12 |
|
|
1 |
|
|
12 |
|
|
3 |
|
||||
| Less: Net gain (loss) on investments |
|
(5 |
) |
|
- |
|
|
(4 |
) |
|
- |
|
||||
| Less: Income tax (expense) benefit related to net gain (loss) on investments |
|
2 |
|
|
- |
|
|
1 |
|
|
- |
|
||||
| Net (loss) income excluding special items and net gain (loss) on investments | $ |
(153 |
) |
$ |
180 |
|
$ |
(408 |
) |
$ |
232 |
|
||||
| (Loss) earnings per common share: | ||||||||||||||||
| Basic | $ |
(0.58 |
) |
$ |
0.60 |
|
$ |
(1.38 |
) |
$ |
0.73 |
|
||||
| Add back: Special items, net of tax |
|
0.10 |
|
|
- |
|
|
0.10 |
|
|
0.03 |
|
||||
| Less: Net gain (loss) on investments, net of tax |
|
(0.01 |
) |
|
- |
|
|
(0.01 |
) |
|
- |
|
||||
| Basic excluding special items and net gain (loss) on investments | $ |
(0.47 |
) |
$ |
0.60 |
|
$ |
(1.27 |
) |
$ |
0.76 |
|
||||
| Diluted | $ |
(0.58 |
) |
$ |
0.59 |
|
$ |
(1.38 |
) |
$ |
0.73 |
|
||||
| Add back: Special items, net of tax |
|
0.10 |
|
|
0.01 |
|
|
0.10 |
|
|
0.03 |
|
||||
| Less: Net gain (loss) on investments, net of tax |
|
(0.01 |
) |
|
- |
|
|
(0.01 |
) |
|
- |
|
||||
| Diluted excluding special items and net gain (loss) on investments | $ |
(0.47 |
) |
$ |
0.60 |
|
$ |
(1.27 |
) |
$ |
0.76 |
|
||||
Adjusted debt to capitalization ratio
Adjusted debt to capitalization ratio is a non-GAAP financial metric which we believe is helpful to investors in assessing the company's overall debt profile. Adjusted debt includes aircraft operating lease liabilities, in addition to total debt and finance leases, to present estimated financial obligations. Adjusted capitalization represents total equity plus adjusted debt.
| NON-GAAP FINANCIAL MEASURE | |||||||
| ADJUSTED DEBT TO CAPITALIZATION RATIO | |||||||
| (in millions) (unaudited) | |||||||
| Long-term debt and finance leases | $ |
3,394 |
|
$ |
3,651 |
|
|
| Current maturities of long-term debt and finance leases |
|
428 |
|
|
355 |
|
|
| Operating lease liabilities - aircraft |
|
233 |
|
|
256 |
|
|
| Adjusted debt | $ |
4,055 |
|
$ |
4,262 |
|
|
| Long-term debt and finance leases | $ |
3,394 |
|
$ |
3,651 |
|
|
| Current maturities of long-term debt and finance leases |
|
428 |
|
|
355 |
|
|
| Operating lease liabilities - aircraft |
|
233 |
|
|
256 |
|
|
| Stockholders' equity |
|
3,446 |
|
|
3,849 |
|
|
| Adjusted capitalization | $ |
7,501 |
|
$ |
8,111 |
|
|
| Adjusted debt to capitalization ratio |
|
54 |
% |
|
53 |
% |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220802005443/en/
JetBlue Investor Relations
Tel: +1 718 709 2202
ir@jetblue.com
Tel: +1 718 709 3089
corpcomm@jetblue.com
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