JetBlue Airways Corporation today reported its results for the third quarter of 2023:
“While we faced challenges in the quarter, including significant weather-related impacts and rising fuel prices, our Crewmembers rose to the occasion, focusing on what we can control to mitigate these headwinds and provide our customers with great service.” said Robin Hayes, JetBlue’s Chief Executive Officer. “As we look ahead, we are making improvements to drive profitable growth and ensure JetBlue is positioned for success in 2024 and beyond.”
Third Quarter 2023 Financial Results
- Net loss for the third quarter of 2023 under Generally Accepted Accounting Principles (“GAAP”) of $153 million or $(0.46) per share. Excluding special items, adjusted net loss for the third quarter of $129 million (1) or $(0.39) per share.
- Third quarter system capacity increased 7.1% year-over-year.
- Operating revenue of $2.4 billion for the third quarter of 2023, down 8.2% year-over-year.
- Operating expenses per available seat mile (“CASM”) for the third quarter of 2023 decreased 3.3% 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”) for the third quarter of 2023 increased 5.9% (1) year-over-year.
- Average fuel price in the third quarter of 2023 of $2.94 per gallon, including hedges.
Third Quarter 2023 Key Highlights
- Executing on Our Cost Initiatives
- Continued to realize savings under the structural cost program, which remains on track to deliver approximately $70 million in cost savings this year and $150 million to $200 million in run-rate savings through 2024.
- Progressed the fleet modernization program with 18 Embraer E190s removed from the fleet to date as we transition to the margin accretive Airbus A220s, which is expected to generate $55 million in cost savings by the end of this year and $75 million in cost savings through 2024.
- Expanding Transatlantic Service
- Began daily service to Amsterdam Schiphol Airport (AMS) from New York’s John F. Kennedy International Airport (JFK) and Boston Logan International Airport (BOS).
- Announced new seasonal service from JFK and BOS to Dublin Airport (DUB) starting March 13, 2024 and from JFK to Edinburgh Airport (EDI) starting May 22, 2024, as well as additional flights to Paris Charles de Gaulle Airport (CDG) with new daily service from BOS starting April 3, 2024 and a second daily flight from JFK starting June 20, 2024.
- Delivering Value to Our Customers
- Recognized by J.D. Power for the JetBlue Plus Card, which ranked the highest among co-brand airline credit cards, demonstrating the value it offers customers.
- Announced new and improved perks for Mosaic members in JetBlue’s TrueBlue® loyalty program starting in 2024, reflecting JetBlue’s commitment to identifying new ways to add value to the program.
- Introduced formal family seating guarantee to ensure children aged 13 and younger can sit next to an adult traveling with them on the same reservation.
Balance Sheet and Liquidity
- $1.5 billion in unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities at quarter-end (excluding our $600 million undrawn revolving credit facility).
- Extended the maturity date of our undrawn revolving credit facility to October 21, 2025.
- Adjusted debt to capital ratio of 55% (1) as of September 30, 2023.
- Paid $254 million in debt and finance lease obligations during 2023.
“We continue to see healthy travel demand during peak periods and the fourth quarter holidays. However, industry capacity is outpacing domestic demand during off peak travel periods. For the fourth quarter, our growth will be driven primarily by international as we proactively work to manage our capacity and reduce schedules in off-peak periods,” said Joanna Geraghty, JetBlue’s President and Chief Operating Officer.
|Fourth Quarter and Full-Year 2023 Outlook||Estimated 4Q 2023||Estimated FY 2023|
|Available Seat Miles (ASMs) Year-Over-Year||0.5% – 3.5%||5.0% – 7.0%|
|Revenue Year-Over-Year||(10.5%) – (6.5%)||3.0% – 5.0%|
|CASM Ex-Fuel (1) (Non-GAAP) Year-Over-Year (2)||8.5% – 10.5%||4.5% – 5.5%|
|Estimated Fuel Price per Gallon (3), (4)||$3.05 – $3.20||$3.02 – $3.07|
|Interest Expense||$60 – $70 million||$205 – $215 million|
|Adjusted Loss per Share (EPS) (Non-GAAP) (1)||($0.55) – ($0.35)||($0.65) – ($0.45)|
“While we have been able to offset some of the costs associated with the challenging operational backdrop, the sheer magnitude of the air traffic control and weather-related delays has been staggering. We remain focused on controlling what we can control, including our structural cost program and fleet modernization plans,” said Ursula Hurley, JetBlue’s Chief Financial Officer.
Top Copyright Photo: JetBlue Airways Airbus A321-231 WL N983JT (msn 7739) (Mint Leaves) LAX (Michael B. Ing). Image: 961734.
JetBlue aircraft photo gallery: