JetBlue Announces Second Quarter 2024 Results
JetBlue Airways (NASDAQ: JBLU) reported its Q2 2024 financial results, exceeding guidance targets. The company introduced JetForward, a strategic framework aimed at restoring profitability, targeting $800M - $900M of incremental EBIT by 2027. Key highlights include:
- Net income of $25 million or $0.07 EPS (GAAP)
- Adjusted net income of $26 million or $0.08 EPS
- Operating revenue of $2.4 billion, down 6.9% YoY
- System capacity decreased by 2.7% YoY
- Average fuel price of $2.87 per gallon
JetBlue is focusing on four priority moves: improving reliability and service, optimizing its East Coast leisure network, enhancing product offerings, and ensuring financial stability. The company ended Q2 with ~$1.6 billion in liquidity and announced aircraft deferrals to improve cash flow.
JetBlue Airways (NASDAQ: JBLU) ha riportato i risultati finanziari del secondo trimestre del 2024, superando le previsioni. L'azienda ha introdotto JetForward, un framework strategico mirato a ripristinare la redditività, puntando a $800 milioni - $900 milioni di EBIT incrementale entro il 2027. I punti salienti includono:
- Utile netto di $25 milioni o $0.07 EPS (GAAP)
- Utile netto rettificato di $26 milioni o $0.08 EPS
- Ricavi operativi di $2.4 miliardi, in calo del 6.9% rispetto all'anno precedente
- Capacità del sistema diminuita del 2.7% rispetto all'anno precedente
- Prezzo medio del carburante di $2.87 per gallone
JetBlue si sta concentrando su quattro iniziative prioritarie: migliorare l'affidabilità e il servizio, ottimizzare la sua rete di svago sulla Costa Est, migliorare l'offerta di prodotti e garantire stabilità finanziaria. L'azienda ha concluso il secondo trimestre con circa $1.6 miliardi in liquidità e ha annunciato rinvii di aerei per migliorare il flusso di cassa.
JetBlue Airways (NASDAQ: JBLU) anunció sus resultados financieros del segundo trimestre de 2024, superando las metas de orientación. La empresa presentó JetForward, un marco estratégico orientado a restaurar la rentabilidad, con un objetivo de EBIT incremental de $800 millones - $900 millones para 2027. Los aspectos más destacados incluyen:
- Ingreso neto de $25 millones o $0.07 EPS (GAAP)
- Ingreso neto ajustado de $26 millones o $0.08 EPS
- Ingresos operativos de $2.4 mil millones, con una disminución del 6.9% en comparación con el año anterior
- Capacidad del sistema disminuida en un 2.7% en comparación con el año anterior
- Precio promedio del combustible de $2.87 por galón
JetBlue se está enfocando en cuatro movimientos prioritarios: mejorar la confiabilidad y el servicio, optimizar su red de ocio en la Costa Este, mejorar la oferta de productos y garantizar la estabilidad financiera. La empresa terminó el segundo trimestre con aproximadamente $1.6 mil millones en liquidez y anunció aplazamientos de aeronaves para mejorar el flujo de caja.
JetBlue Airways (NASDAQ: JBLU)는 2024년 2분기 재무 결과를 발표하며 가이던스 목표를 초과 달성했습니다. 회사는 수익성을 회복하기 위한 전략적 프레임워크인 JetForward를 도입했습니다. 2027년까지 8억 달러에서 9억 달러의 추가 EBIT을 목표로 하고 있습니다. 주요 하이라이트는 다음과 같습니다:
- 순이익 2500만 달러 또는 주당 0.07 달러 EPS (GAAP)
- 조정된 순이익 2600만 달러 또는 주당 0.08 달러 EPS
- 운영 수익 24억 달러로 전년 대비 6.9% 감소
- 시스템 용량 전년 대비 2.7% 감소
- 평균 연료 가격 갤런당 2.87달러
JetBlue는 신뢰성과 서비스 향상, 동부 해안 레저 네트워크 최적화, 제품 제공 확대 및 재정적 안정성 확보를 포함한 네 가지 우선적 조치에 집중하고 있습니다. 회사는 2분기를 약 16억 달러의 유동성으로 마감했으며, 현금 흐름 개선을 위해 항공기 연기를 발표했습니다.
JetBlue Airways (NASDAQ: JBLU) a annoncé ses résultats financiers du deuxième trimestre 2024, dépassant les objectifs prévus. L'entreprise a introduit JetForward, un cadre stratégique visant à restaurer la rentabilité, avec un objectif de 800 millions à 900 millions de dollars d'EBIT supplémentaire d'ici 2027. Les principaux points forts incluent :
- Revenu net de 25 millions de dollars ou 0,07 $ EPS (GAAP)
- Revenu net ajusté de 26 millions de dollars ou 0,08 $ EPS
- Recettes d'exploitation de 2,4 milliards de dollars, en baisse de 6,9 % par rapport à l'année précédente
- Capacité du système réduite de 2,7 % par rapport à l'année précédente
- Prix moyen du carburant de 2,87 $ par gallon
JetBlue se concentre sur quatre priorités : améliorer la fiabilité et le service, optimiser son réseau de loisirs sur la côte Est, améliorer ses offres de produits et assurer la stabilité financière. L'entreprise a terminé le deuxième trimestre avec environ 1,6 milliard de dollars de liquidités et a annoncé des reports d'avions pour améliorer le flux de trésorerie.
JetBlue Airways (NASDAQ: JBLU) hat die finanziellen Ergebnisse für das 2. Quartal 2024 veröffentlicht und die Zielvorgaben übertroffen. Das Unternehmen hat JetForward vorgestellt, ein strategisches Rahmenwerk zur Wiederherstellung der Rentabilität, mit dem Ziel, bis 2027 einen zusätzlichen EBIT von 800 Millionen bis 900 Millionen Dollar zu erzielen. Wichtige Highlights sind:
- Nettogewinn von 25 Millionen Dollar oder 0,07 Dollar EPS (GAAP)
- Bereinigter Nettogewinn von 26 Millionen Dollar oder 0,08 Dollar EPS
- Betriebsumsatz von 2,4 Milliarden Dollar, ein Rückgang um 6,9 % im Vergleich zum Vorjahreszeitraum
- Systemkapazität um 2,7 % im Vergleich zum Vorjahr gesenkt
- Durchschnittlicher Kraftstoffpreis von 2,87 Dollar pro Gallone
JetBlue konzentriert sich auf vier Prioritäten: Verbesserung der Zuverlässigkeit und des Services, Optimierung des Freizeitsystems an der Ostküste, Erweiterung des Produktangebots und Sicherstellung der finanziellen Stabilität. Das Unternehmen schloss das 2. Quartal mit ca. 1,6 Milliarden Dollar Liquidität ab und gab Flugzeugverzögerungen bekannt, um den Cashflow zu verbessern.
- Exceeded Q2 guidance targets
- Targeting $800M - $900M of incremental EBIT by 2027
- Improved operational performance with 98.8% completion factor
- Delivered ~$140 million of incremental top-line benefit year-to-date
- Executed ~$145 million in structural cost program savings to-date
- Operating revenue down 6.9% year-over-year to $2.4 billion
- System capacity decreased by 2.7% year-over-year
- CASM increased 2.6% year-over-year
- Forecasting 5.0% - 2.5% decrease in Available Seat Miles for FY 2024
- Projecting 6.0% - 4.0% decrease in Revenue for FY 2024
Insights
JetBlue's Q2 2024 results reveal a mixed financial picture with some positive developments amidst ongoing challenges. The company reported a GAAP net income of
The introduction of 'JetForward', a strategic framework aimed at restoring profitability, is a important move. The company's target of
Notably, JetBlue's cost-cutting efforts are showing early signs of success. The company has already achieved
However, investors should be cautious about the projected
JetBlue's strategic pivot with 'JetForward' represents a critical juncture for the airline. The focus on boosting reliability and doubling down on the East Coast leisure network is a smart move, leveraging the company's strengths and market position. By exiting 15 BlueCities and over 50 routes, JetBlue is making tough but necessary decisions to optimize its network and improve profitability.
The emphasis on New York, New England, Florida and Puerto Rico aligns well with leisure travel trends and JetBlue's brand identity. The addition of Manchester, New Hampshire as the tenth New England airport in JetBlue's network further solidifies this strategy. However, the success of this approach will depend on JetBlue's ability to differentiate itself in increasingly competitive leisure markets.
The improvement in operational performance, with a completion factor of
JetBlue's product enhancements, such as adding a complimentary carry-on bag to the Blue Basic fare, show a willingness to adapt to customer preferences. However, the airline must carefully balance these offerings with its cost-cutting initiatives to ensure they contribute positively to the bottom line. The success of JetBlue's transformation will hinge on its ability to execute these strategic changes while maintaining its unique brand identity in a highly competitive industry.
Exceeded second quarter guidance targets
Introducing JetForward, the evolution of JetBlue's strategy to restore profitability
Targeting
"We closed the first half of 2024 with meaningful year-over-year improvements in our operation and exceeded our second quarter guidance through strong execution, early evidence the changes we are implementing as part of our refocused strategy are yielding positive benefits," said Joanna Geraghty, JetBlue's chief executive officer. "Today, and as the year progresses, we are excited to share more details about JetForward, our strategic framework to return JetBlue to sustained profitability, and the four priority moves aimed at driving significant value over the coming years.
"These include boosting reliability and doubling down on our commitment to caring service to improve satisfaction and drive cost savings; reinvesting in building the best leisure network on the East Coast, where we are positioned to win; enhancing our existing product offerings and loyalty perks to better deliver the elevated and differentiated experiences our customers want; and keeping our costs low so that we can continue to offer customers exceptional value in the sky as we build a secure financial future for JetBlue."
"In the second quarter, we continued to implement our JetForward strategy with the announcement of more significant network changes. We are actively reinvesting in our core geographies in
Four Priority Moves Underpin
-
Reliable & Caring Service
- Improving on-time performance through multiple approaches including investments in tools and technology, designed to enable better planning and recovery.
- Delivering outstanding customer service and a consistent experience, from pre-booking to post-travel.
-
Best East Coast Leisure Network
-
Refocusing our network around leisure flying originating in
New York , New England,Florida and Latin geographies. -
Recently announced new routes to meet our core customers' needs by doubling down on leisure flying in New England, including adding
Manchester, New Hampshire to our network, the tenth airport with JetBlue service in New England. - Announced four tranches of network changes to-date culminating in 15 BlueCity closures and over 50 route exits as we reduce unprofitable flying.
-
Refocusing our network around leisure flying originating in
-
Products & Perks Customers Value
- Enhancing our product offerings and loyalty perks to attract customers that value high quality and premium experiences.
- Optimizing product merchandising to maximize revenue potential, including through the recent addition of a complimentary carry-on bag to our Blue Basic fare.
-
A Secure Financial Future
-
Sustaining our historical cost advantage through our new business cost transformation program, enabled by data-science driven optimization, new technology investments, and labor & infrastructure productivity, which is forecasted to drive
of structural cost savings through 2027.$175 million -
Restoring balance sheet health through capital discipline, including deferring approximately
of capital expenditures through 2029, designed to also improve our cash flow outlook.$3.0 billion
-
Sustaining our historical cost advantage through our new business cost transformation program, enabled by data-science driven optimization, new technology investments, and labor & infrastructure productivity, which is forecasted to drive
"While many of these underlying initiatives will take time to ramp to their full potential, with the strong foundation of JetForward, we are poised to generate
Second Quarter 2024 Financial Results
-
Net income for the second quarter of 2024 under Generally Accepted Accounting Principles ("GAAP") of
or$25 million earnings per share. Excluding special items, adjusted net income for the second quarter of 2024 of$0.07 (1) or$26 million (1) earnings per share.$0.08 -
Second quarter 2024 system capacity decreased by
2.7% year-over-year. -
Operating revenue of
for the second quarter of 2024, down$2.4 billion 6.9% year-over-year. -
Operating expense of
for the second quarter of 2024, a decrease of$2.4 billion 0.1% year-over-year. -
Operating expense per available seat mile ("CASM") for the second quarter of 2024 increased
2.6% year-over-year. -
Operating expense, excluding special items for the second quarter of 2024, increased
0.9% (1) year-over-year. -
Operating expense per available seat mile, excluding fuel, other non-airline operating expenses, and special items ("CASM ex-Fuel")(1) for the second quarter of 2024 increased
3.7% (1) year-over-year. -
Average fuel price in the second quarter of 2024 of
per gallon.$2.87
Second Quarter 2024 Key Highlights
- Continued implementation of refocused strategy through network optimization announcements, improved merchandising efforts and initial progress on multi-year reliability initiative.
-
Delivered improved operational performance year-over-year with a completion factor of
98.8% , up from97.8% in 2Q23. -
Progressed on our
2024 revenue initiative target, delivering$300 million ~ of incremental top-line benefit year-to-date.$140 million -
Executed on our cost initiatives, as evidenced by structural cost program savings of
~ to-date and fleet modernization cost avoidance of$145 million to-date.$83 million -
Ended the quarter with
~ in liquidity, excluding our undrawn$1.6 billion revolving credit facility.$600 million
Outlook
"As we execute on our strategy to return to profitability, we remain focused on delivering on our near-term financial goals. In the second half, we expect sequential year-over-year unit revenue momentum to bolster the top-line, supported by our
Third Quarter and Full Year 2024 Outlook |
Estimated 3Q 2024 |
Estimated FY 2024 |
Available Seat Miles ("ASMs") Year-Over-Year |
( |
( |
Revenue Year-Over-Year |
( |
( |
CASM Ex-Fuel (1) Year-Over-Year (2) |
|
|
Fuel Price per Gallon (3), (4) |
|
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Capital Expenditures |
|
|
"We've faced a number of unit cost headwinds this year, including approximately one point of pressure from the change in recognition of Pratt & Whitney compensation and one point from lower capacity than planned, yet we are maintaining our full year CASM-ex Fuel(1) guidance and now expect it be in the range of
Earnings Call Details
JetBlue will hold a conference call to discuss its quarterly earnings today, July 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 at least 30 days.
For further details, see the second quarter 2024 Earnings Presentation available via the internet at http://investor.jetblue.com.
About JetBlue
JetBlue is
Notes
(1) |
|
Non-GAAP financial measure; Note A provides a reconciliation of each non-GAAP financial measure used in this release to the most directly comparable GAAP financial measure 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. |
(2) |
|
Includes the impact from labor agreements of approximately two points for each of the third quarter and the full year 2024. |
(3) |
|
Includes fuel taxes, hedges and other fuel fees. |
(4) |
|
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 July 12, 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 (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Release are 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, including our expected return to profitability, expectations with respect to our headwinds, and our business strategy and plans and objectives for future operations, including our refreshed standalone strategies, such as JetForward. 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 risk associated with the execution of our strategic operating plans in the near-term and long-term; our extremely competitive industry; risks related to the long-term nature of our fleet order book; volatility in fuel prices and availability of fuel; increased maintenance costs associated with fleet age; costs associated with salaries, wages and benefits; risks associated with a potential material reduction in the rate of interchange reimbursement fees; risks associated with doing business internationally; our reliance on high daily aircraft utilization; our dependence on the
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 Report, 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 |
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(unaudited, in millions, except per share amounts) |
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Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||||||||
(percent changes based on unrounded numbers) |
2024 |
|
2023 |
|
Percent
|
|
2024 |
|
2023 |
|
Percent
|
|
||||||||||
OPERATING REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Passenger |
$ |
2,265 |
|
|
$ |
2,460 |
|
|
(7.9 |
) |
|
$ |
4,319 |
|
|
$ |
4,641 |
|
|
(6.9 |
) |
|
Other |
|
163 |
|
|
|
150 |
|
|
9.1 |
|
|
|
318 |
|
|
|
296 |
|
|
7.3 |
|
|
Total operating revenues |
|
2,428 |
|
|
|
2,610 |
|
|
(6.9 |
) |
|
|
4,637 |
|
|
|
4,937 |
|
|
(6.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Aircraft fuel |
|
626 |
|
|
|
621 |
|
|
0.7 |
|
|
|
1,251 |
|
|
|
1,406 |
|
|
(11.0 |
) |
|
Salaries, wages and benefits |
|
784 |
|
|
|
772 |
|
|
1.6 |
|
|
|
1,607 |
|
|
|
1,514 |
|
|
6.2 |
|
|
Landing fees and other rents |
|
177 |
|
|
|
163 |
|
|
8.6 |
|
|
|
341 |
|
|
|
323 |
|
|
5.8 |
|
|
Depreciation and amortization |
|
163 |
|
|
|
155 |
|
|
5.3 |
|
|
|
322 |
|
|
|
306 |
|
|
5.0 |
|
|
Aircraft rent |
|
25 |
|
|
|
34 |
|
|
(25.2 |
) |
|
|
52 |
|
|
|
66 |
|
|
(20.8 |
) |
|
Sales and marketing |
|
87 |
|
|
|
82 |
|
|
6.6 |
|
|
|
164 |
|
|
|
157 |
|
|
4.3 |
|
|
Maintenance, materials and repairs |
|
150 |
|
|
|
170 |
|
|
(11.5 |
) |
|
|
283 |
|
|
|
345 |
|
|
(18.0 |
) |
|
Special items |
|
1 |
|
|
|
24 |
|
|
(97.3 |
) |
|
|
563 |
|
|
|
136 |
|
|
NM (1) |
|
|
Other operating expenses |
|
358 |
|
|
|
354 |
|
|
1.2 |
|
|
|
717 |
|
|
|
691 |
|
|
3.7 |
|
|
Total operating expenses |
|
2,371 |
|
|
|
2,375 |
|
|
(0.1 |
) |
|
|
5,300 |
|
|
|
4,944 |
|
|
7.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME (LOSS) |
|
57 |
|
|
|
235 |
|
|
(75.9 |
) |
|
|
(663 |
) |
|
|
(7 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating margin |
|
2.3 |
% |
|
|
9.0 |
% |
|
(6.7 |
) |
pts. |
|
(14.3 |
)% |
|
|
(0.1 |
)% |
|
(14.2 |
) |
pts. |
|
|
|
|
|
|
|
|
|
|
|
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OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
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Interest expense |
|
(63 |
) |
|
|
(47 |
) |
|
33.2 |
|
|
|
(115 |
) |
|
|
(93 |
) |
|
24.1 |
|
|
Interest income |
|
18 |
|
|
|
18 |
|
|
(0.3 |
) |
|
|
37 |
|
|
|
30 |
|
|
21.6 |
|
|
Capitalized interest |
|
4 |
|
|
|
5 |
|
|
(9.0 |
) |
|
|
8 |
|
|
|
10 |
|
|
(9.3 |
) |
|
Gain (loss) on investments, net |
|
(2 |
) |
|
|
4 |
|
|
NM |
|
|
|
(23 |
) |
|
|
7 |
|
|
NM |
|
|
Other |
|
17 |
|
|
|
1 |
|
|
NM |
|
|
|
20 |
|
|
|
3 |
|
|
NM |
|
|
Total other expense |
|
(26 |
) |
|
|
(19 |
) |
|
(35.3 |
) |
|
|
(73 |
) |
|
|
(43 |
) |
|
(69.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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INCOME (LOSS) BEFORE INCOME TAXES |
|
31 |
|
|
|
216 |
|
|
(85.5 |
) |
|
|
(736 |
) |
|
|
(50 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Pre-tax margin |
|
1.3 |
% |
|
|
8.3 |
% |
|
(7.0 |
) |
pts. |
|
(15.9 |
)% |
|
|
(1.0 |
)% |
|
(14.9 |
) |
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax benefit (expense) |
|
(6 |
) |
|
|
(78 |
) |
|
(91.9 |
) |
|
|
45 |
|
|
|
(4 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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NET INCOME (LOSS) |
$ |
25 |
|
|
$ |
138 |
|
|
(81.9 |
) |
|
$ |
(691 |
) |
|
$ |
(54 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EARNINGS (LOSS) PER COMMON SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
0.07 |
|
|
$ |
0.41 |
|
|
|
|
$ |
(2.02 |
) |
|
$ |
(0.16 |
) |
|
|
|
||
Diluted |
$ |
0.07 |
|
|
$ |
0.41 |
|
|
|
|
$ |
(2.02 |
) |
|
$ |
(0.16 |
) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
|
345.1 |
|
|
|
331.9 |
|
|
|
|
|
342.7 |
|
|
|
330.0 |
|
|
|
|
||
Diluted |
|
348.9 |
|
|
|
333.6 |
|
|
|
|
|
342.7 |
|
|
|
330.0 |
|
|
|
|
(1) |
|
Not meaningful or greater than |
JETBLUE AIRWAYS CORPORATION |
||||||||||||||||||||||
COMPARATIVE OPERATING STATISTICS |
||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended
|
|
||||||||||||||||||
(percent changes based on unrounded numbers) |
2024 |
|
2023 |
|
Percent
|
|
2024 |
|
2023 |
|
Percent
|
|
||||||||||
Revenue passengers (thousands) |
|
10,375 |
|
|
|
11,207 |
|
|
(7.4 |
) |
|
|
19,960 |
|
|
|
21,398 |
|
|
(6.7 |
) |
|
Revenue passenger miles (RPMs) (millions) |
|
14,192 |
|
|
|
14,798 |
|
|
(4.1 |
) |
|
|
27,194 |
|
|
|
28,173 |
|
|
(3.5 |
) |
|
Available seat miles (ASMs) (millions) |
|
16,887 |
|
|
|
17,353 |
|
|
(2.7 |
) |
|
|
33,200 |
|
|
|
34,122 |
|
|
(2.7 |
) |
|
Load factor |
|
84.0 |
% |
|
|
85.3 |
% |
|
(1.3 |
) |
pts. |
|
81.9 |
% |
|
|
82.6 |
% |
|
(0.7 |
) |
pts. |
Aircraft utilization (hours per day) (1) |
|
10.4 |
|
|
|
11.3 |
|
|
(8.0 |
) |
|
|
10.3 |
|
|
|
11.2 |
|
|
(8.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average fare |
$ |
218.27 |
|
|
$ |
219.47 |
|
|
(0.5 |
) |
|
$ |
216.41 |
|
|
$ |
216.90 |
|
|
(0.2 |
) |
|
Yield per passenger mile (cents) |
|
15.96 |
|
|
|
16.62 |
|
|
(4.0 |
) |
|
|
15.88 |
|
|
|
16.47 |
|
|
(3.6 |
) |
|
Passenger revenue per ASM (cents) |
|
13.41 |
|
|
|
14.17 |
|
|
(5.4 |
) |
|
|
13.01 |
|
|
|
13.60 |
|
|
(4.3 |
) |
|
Operating revenue per ASM (cents) |
|
14.38 |
|
|
|
15.04 |
|
|
(4.4 |
) |
|
|
13.97 |
|
|
|
14.47 |
|
|
(3.5 |
) |
|
Operating expense per ASM (cents) |
|
14.04 |
|
|
|
13.68 |
|
|
2.6 |
|
|
|
15.96 |
|
|
|
14.49 |
|
|
10.2 |
|
|
Operating expense per ASM, excluding fuel (cents) (2) |
|
10.24 |
|
|
|
9.87 |
|
|
3.7 |
|
|
|
10.40 |
|
|
|
9.87 |
|
|
5.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Departures |
|
81,424 |
|
|
|
89,036 |
|
|
(8.5 |
) |
|
|
161,124 |
|
|
|
176,517 |
|
|
(8.7 |
) |
|
Average stage length (miles) |
|
1,293 |
|
|
|
1,218 |
|
|
6.2 |
|
|
|
1,286 |
|
|
|
1,208 |
|
|
6.5 |
|
|
Average number of operating aircraft during period |
|
285 |
|
|
|
282 |
|
|
1.2 |
|
|
|
285 |
|
|
|
284 |
|
|
0.4 |
|
|
Average fuel cost per gallon |
$ |
2.87 |
|
|
$ |
2.73 |
|
|
5.1 |
|
|
$ |
2.92 |
|
|
$ |
3.15 |
|
|
(7.3 |
) |
|
Fuel gallons consumed (millions) |
|
218 |
|
|
|
228 |
|
|
(4.2 |
) |
|
|
429 |
|
|
|
446 |
|
|
(4.0 |
) |
|
Average number of full-time equivalent crewmembers |
|
20,097 |
|
|
|
20,921 |
|
|
(3.9 |
) |
|
|
20,160 |
|
|
|
20,729 |
|
|
(2.7 |
) |
|
(1) |
|
Includes aircraft temporarily removed from service, including aircraft impacted by the Pratt & Whitney engine groundings and lack of engine availability. |
(2) |
|
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) |
|||||
|
June 30, 2024 |
|
December 31, 2023 |
||
|
(unaudited) |
|
|
||
Cash and cash equivalents |
$ |
1,312 |
|
$ |
1,166 |
Total investment securities |
|
288 |
|
|
564 |
Total assets |
|
13,993 |
|
|
13,853 |
Total debt |
|
5,370 |
|
|
4,716 |
Stockholders' equity |
|
2,697 |
|
|
3,337 |
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 condensed 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 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 each non-GAAP financial measure used in this Earnings Release to the most directly comparable GAAP financial measure.
With respect to Jet Blue’s CASM Ex-Fuel (1) guidance and EBIT (2) targets, JetBlue is not able to provide a reconciliation of forward-looking measures where the quantification of certain excluded items reflected in the measures 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 interest rates and 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, other non-airline operating expenses, and special items. |
(2) |
|
EBIT is a non-GAAP measure that excludes interest and income taxes from net income. |
Operating expense per available seat mile, excluding fuel, 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, operating expenses related to other non-airline businesses, such as JetBlue Technology 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 that our metrics are more comparable with the presentation of our results excluding such impact.
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.
For the three months ended June 30, 2024, special items included voluntary opt-out costs. For the six months ended June 30, 2024, special items included Spirit-related costs, voluntary opt-out costs, and Embraer E190 fleet transition costs.
For the three months ended June 30, 2023 special items included Spirit-related costs. For the six months ended June 30, 2023, special items included union contract costs and Spirit-related costs.
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 (CASM), EXCLUDING FUEL |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
||||||||||||||
|
$ |
|
|
|
Cents per ASM |
|
|
||||||||
($ in millions; per ASM data in cents; percent changes based on unrounded numbers) |
2024 |
|
2023 |
|
Percent
|
|
2024 |
|
2023 |
|
Percent
|
||||
Total operating expenses |
$ |
2,371 |
|
$ |
2,375 |
|
(0.1 |
) |
|
14.04 |
|
13.68 |
|
2.6 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
||||
Aircraft fuel |
|
626 |
|
|
621 |
|
0.7 |
|
|
3.71 |
|
3.58 |
|
3.5 |
|
Other non-airline expenses |
|
15 |
|
|
16 |
|
(2.1 |
) |
|
0.09 |
|
0.09 |
|
0.6 |
|
Special items |
|
1 |
|
|
24 |
|
(97.3 |
) |
|
— |
|
0.14 |
|
(97.2 |
) |
Operating expenses, excluding fuel |
$ |
1,729 |
|
$ |
1,714 |
|
1.0 |
|
|
10.24 |
|
9.87 |
|
3.7 |
|
|
Six Months Ended June 30, |
||||||||||||||
|
$ |
|
|
|
Cents per ASM |
|
|
||||||||
($ in millions; per ASM data in cents; percent changes based on unrounded numbers) |
2024 |
|
2023 |
|
Percent
|
|
2024 |
|
2023 |
|
Percent
|
||||
Total operating expenses |
$ |
5,300 |
|
$ |
4,944 |
|
7.2 |
|
|
15.96 |
|
14.49 |
|
10.2 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
||||
Aircraft fuel |
|
1,251 |
|
|
1,406 |
|
(11.0 |
) |
|
3.77 |
|
4.12 |
|
(8.6 |
) |
Other non-airline expenses |
|
32 |
|
|
33 |
|
(3.3 |
) |
|
0.10 |
|
0.10 |
|
(0.7 |
) |
Special items |
|
563 |
|
|
136 |
|
NM (1) |
|
1.69 |
|
0.40 |
|
NM |
|
|
Operating expenses, excluding fuel |
$ |
3,454 |
|
$ |
3,369 |
|
2.5 |
|
|
10.40 |
|
9.87 |
|
5.4 |
|
(1) |
|
Not meaningful or greater than |
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 Gain (Loss) on Investments
Our GAAP results in the applicable periods were impacted by credits and charges that were deemed special items.
For the three months ended June 30, 2024, special items included voluntary opt-out costs. For the six months ended June 30, 2024, special items included Spirit-related costs, voluntary opt-out costs, and Embraer E190 fleet transition costs.
For the three months ended June 30, 2023 special items included Spirit-related costs. For the six months ended June 30, 2023, special items included union contract costs and Spirit-related costs.
Certain net gains and losses on our investments were also excluded from our June 30, 2024 and 2023 non-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 for the periods presented.
NON-GAAP FINANCIAL MEASURE |
|||||||||||||||
RECONCILIATION OF OPERATING EXPENSE, OPERATING INCOME (LOSS), ADJUSTED OPERATING MARGIN, PRE-TAX INCOME (LOSS), ADJUSTED PRE-TAX MARGIN, NET INCOME (LOSS), EARNINGS (LOSS) PER SHARE, EXCLUDING SPECIAL ITEMS AND GAIN (LOSS) ON INVESTMENTS |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(in millions except percentages) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Total operating revenues |
$ |
2,428 |
|
|
$ |
2,610 |
|
|
$ |
4,637 |
|
|
$ |
4,937 |
|
|
|
|
|
|
|
|
|
||||||||
RECONCILIATION OF OPERATING EXPENSE |
|
|
|
|
|||||||||||
Total operating expenses |
$ |
2,371 |
|
|
$ |
2,375 |
|
|
$ |
5,300 |
|
|
$ |
4,944 |
|
Less: Special items |
|
1 |
|
|
|
24 |
|
|
$ |
563 |
|
|
$ |
136 |
|
Total operating expenses excluding special items |
$ |
2,370 |
|
|
$ |
2,351 |
|
|
$ |
4,737 |
|
|
$ |
4,808 |
|
Percent change |
|
0.9 |
% |
|
|
|
|
(1.5 |
)% |
|
|
||||
|
|
|
|
|
|
|
|
||||||||
RECONCILIATION OF OPERATING INCOME (LOSS) |
|
|
|
|
|
|
|||||||||
Operating income (loss) |
$ |
57 |
|
|
$ |
235 |
|
|
$ |
(663 |
) |
|
$ |
(7 |
) |
Add back: Special items |
|
1 |
|
|
|
24 |
|
|
|
563 |
|
|
|
136 |
|
Operating income (loss) excluding special items |
$ |
58 |
|
|
$ |
259 |
|
|
$ |
(100 |
) |
|
$ |
129 |
|
|
|
|
|
|
|
|
|
||||||||
RECONCILIATION OF ADJUSTED OPERATING MARGIN |
|
|
|
|
|
|
|||||||||
Operating margin |
|
2.3 |
% |
|
|
9.0 |
% |
|
|
(14.3 |
)% |
|
|
(0.1 |
)% |
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) excluding special items |
$ |
58 |
|
|
$ |
259 |
|
|
$ |
(100 |
) |
|
$ |
129 |
|
Total operating revenues |
|
2,428 |
|
|
|
2,610 |
|
|
|
4,637 |
|
|
|
4,937 |
|
Adjusted operating margin |
|
2.4 |
% |
|
|
9.9 |
% |
|
|
(2.2 |
)% |
|
|
2.6 |
% |
|
|
|
|
|
|
|
|
||||||||
RECONCILIATION OF PRE-TAX INCOME (LOSS) |
|
|
|
|
|
|
|||||||||
Income (loss) before income taxes |
$ |
31 |
|
|
$ |
216 |
|
|
$ |
(736 |
) |
|
$ |
(50 |
) |
Add back: Special items |
|
1 |
|
|
|
24 |
|
|
|
563 |
|
|
|
136 |
|
Less: Gain (loss) on investments, net |
|
(2 |
) |
|
|
4 |
|
|
|
(23 |
) |
|
|
7 |
|
Income (loss) before income taxes excluding special items and gain (loss) on investments, net |
$ |
34 |
|
|
$ |
236 |
|
|
$ |
(150 |
) |
|
$ |
79 |
|
|
|
|
|
|
|
|
|
||||||||
RECONCILIATION OF ADJUSTED PRE-TAX MARGIN |
|
|
|
|
|
|
|||||||||
Pre-tax margin |
|
1.3 |
% |
|
|
8.3 |
% |
|
|
(15.9 |
)% |
|
|
(1.0 |
)% |
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes excluding special items |
$ |
34 |
|
|
$ |
236 |
|
|
$ |
(150 |
) |
|
$ |
79 |
|
Total operating revenues |
|
2,428 |
|
|
|
2,610 |
|
|
|
4,637 |
|
|
|
4,937 |
|
Adjusted pre-tax margin |
|
1.4 |
% |
|
|
9.1 |
% |
|
|
(3.2 |
)% |
|
|
1.6 |
% |
|
|
|
|
|
|
|
|
||||||||
RECONCILIATION OF NET INCOME (LOSS) |
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ |
25 |
|
|
$ |
138 |
|
|
$ |
(691 |
) |
|
$ |
(54 |
) |
Add back: Special items |
|
1 |
|
|
|
24 |
|
|
|
563 |
|
|
|
136 |
|
Less: Income tax benefit related to special items |
|
1 |
|
|
|
7 |
|
|
|
8 |
|
|
|
48 |
|
Less: Gain (loss) on investments, net |
|
(2 |
) |
|
|
4 |
|
|
|
(23 |
) |
|
|
7 |
|
Less: Income tax benefit (expense) related to gain (loss) on investments, net |
|
1 |
|
|
|
(1 |
) |
|
|
6 |
|
|
|
(2 |
) |
Net income (loss) excluding special items and gain (loss) on investments, net |
$ |
26 |
|
|
$ |
152 |
|
|
$ |
(119 |
) |
|
$ |
29 |
|
NON-GAAP FINANCIAL MEASURE |
||||||||||||||
RECONCILIATION OF OPERATING EXPENSE, OPERATING INCOME (LOSS), ADJUSTED OPERATING MARGIN, PRE-TAX INCOME (LOSS), ADJUSTED PRE-TAX MARGIN, NET INCOME (LOSS), EARNINGS (LOSS) PER SHARE, EXCLUDING SPECIAL ITEMS AND GAIN (LOSS) ON INVESTMENTS (CONTINUED) |
||||||||||||||
(unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||
CALCULATION OF EARNINGS (LOSS) PER SHARE |
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
Earnings (Loss) per common share |
|
|
|
|
|
|
|
|||||||
Basic |
$ |
0.07 |
|
|
$ |
0.41 |
|
$ |
(2.02 |
) |
|
$ |
(0.16 |
) |
Add back: Special items |
|
— |
|
|
|
0.07 |
|
|
1.64 |
|
|
|
0.42 |
|
Less: Income tax benefit related to special items |
|
— |
|
|
|
0.02 |
|
|
0.02 |
|
|
|
0.15 |
|
Less: Gain (loss) on investments, net |
|
(0.01 |
) |
|
|
0.01 |
|
|
(0.07 |
) |
|
|
0.02 |
|
Less: Income tax benefit (expense) related to gain (loss) on investments, net |
|
— |
|
|
|
— |
|
|
0.02 |
|
|
|
(0.01 |
) |
Basic excluding special items and gain (loss) on investments, net |
$ |
0.08 |
|
|
$ |
0.45 |
|
$ |
(0.35 |
) |
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|||||||
Diluted |
$ |
0.07 |
|
|
$ |
0.41 |
|
$ |
(2.02 |
) |
|
$ |
(0.16 |
) |
Add back: Special items |
|
— |
|
|
|
0.07 |
|
|
1.64 |
|
|
|
0.42 |
|
Less: Income tax benefit related to special items |
|
— |
|
|
|
0.02 |
|
|
0.02 |
|
|
|
0.15 |
|
Less: Gain (loss) on investments, net |
|
(0.01 |
) |
|
|
0.01 |
|
|
(0.07 |
) |
|
|
0.02 |
|
Less: Income tax benefit (expense) related to gain (loss) on investments, net |
|
— |
|
|
|
— |
|
|
0.02 |
|
|
|
(0.01 |
) |
Diluted excluding special items and gain (loss) on investments, net |
$ |
0.08 |
|
|
$ |
0.45 |
|
$ |
(0.35 |
) |
|
$ |
0.10 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730106245/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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