Tag Archives: Airbus A320-232

JetBlue announces its third quarter financial results

JetBlue's 2019 "Bear Force One"

JetBlue Airways Corporation today reported its results for the third quarter 2019:

 

  • Reported diluted earnings per share of $0.63 in the third quarter of 2019 compared to a diluted earnings per share of $0.16 in the third quarter of 2018. Adjusted diluted earnings per share was $0.59(1) in the third quarter of 2019 versus $0.42(1) in the third quarter of 2018. Note A to this earnings release includes the GAAP to Non-GAAP reconciliation between reported and adjusted diluted earnings per share.
  • GAAP pre-tax income of $254 million in the third quarter of 2019, compared to a pre-tax income of $68 million in the third quarter of 2018. Excluding the one-time items, adjusted pre-tax income of $239 million(1), up 32% from an adjusted pre-tax income of $180 million(1) in the third quarter of 2018.
  • Pre-tax margin of 12.2%, up from a pre-tax margin of 3.4% in the third quarter of 2018. Adjusted pre-tax margin of 11.4%(1), a 2.4 percentage point increase year over year from an adjusted pre-tax margin of 9.0%(1), exclusive of the one-time items.

Highlights from the Third Quarter 2019

  • Third quarter 2019 revenue per available seat mile (RASM) declined (0.9)% year over year. This decline is slightly better than the mid-point of our updated guidance range of (2.0)% to 0.0%.
  • Operating expenses per available seat mile, excluding fuel (CASM ex-fuel)(1) increased 0.3%, better than the low end of our initial guidance range of 0.5% to 2.5%. This improvement is driven by the compounding benefits of the Structural Cost Program, and the favorable timing of expenses from the third into the fourth quarter of 2019.

Key Guidance for the Fourth Quarter and Full Year 2019:

  • Capacity is expected to increase between 4.5% and 6.5% year over year in the fourth quarter 2019. For the full year 2019, JetBlue expects capacity to increase between 6.0% and 7.0%.
  • RASM growth is expected to range between (3.5)% and (0.5)% for the fourth quarter 2019 compared to the same period in 2018.
  • CASM ex-fuel is expected to range between (1.0)% and 1.0% for the fourth quarter of 2019. For the full year 2019, JetBlue expects year over year CASM ex-fuel growth between 0.5% and 1.0%.

Executing our Plan to Reach our EPS Commitments

“I want to thank all the teams at JetBlue for executing our plan to create long-term value for our customers and owners. We are gaining traction on all of the strategic ‘Building Blocks’ we laid out in our last Investor Day. We are just beginning to see the benefits of our revenue, cost, fleet and capital allocation efforts, with additional opportunities ahead of us. Despite some near-term pressures on revenue in our international markets and NEO delays, we believe we are on track to deliver on our goal of $2.50 to 3.00 dollars EPS in 2020,” said Robin Hayes, JetBlue’s Chief Executive Officer.

“I’m particularly pleased with the progress we are making to improve our unit costs as we deliver on our commitments. In the third quarter, we beat the low end of our CASM ex-Fuel guidance, despite over a half point of capacity lost due to Hurricane Dorian. Our improved completion factor more than offset any storm impact.”

“In our commercial building blocks, we believe that our plan to strengthen our unit revenues into 2020 can return us to positive RASM growth. Our efforts into 2020 include a second year of network reallocation and ancillary initiatives, innovations from JetBlue Travel Products, our ongoing work in Loyalty, as well as the contribution from Fare Options 2.0 launching this quarter.”

Revenue Performance and Outlook

“During the third quarter our capacity grew 4.8 percent, near the high end of our guidance range of 3 to 5 percent. Higher capacity growth was the result of solid improvement in our completion factor. Our operational initiatives more than offset the impact of hurricane Dorian and runway construction in Fort Lauderdale and JFK,” said Joanna Geraghty, JetBlue’s President and Chief Operating Officer.

“Our Latin and Caribbean franchise was impacted by disruption in multiple markets. We saw challenges begin earlier this year, but ramped significantly through the summer. We’ve taken quick action and are redeploying capacity to manage demand in the impacted markets.

For the fourth quarter, we expect RASM to decline between (3.5) and (0.5) percent year over year. We anticipate steady demand in the domestic market, led by transcon and business travel, and see a broadly decelerating domestic yield environment for JetBlue and the industry. In our international markets, we expect capacity and demand challenges to continue into the fourth quarter. We expect ongoing capacity adjustments, combined with demand recovery, to further improve our international RASM trends into next year.”

Cost Performance, Outlook and Balance Sheet

“During the third quarter, CASM ex‐fuel increased 0.3 percent year over year, beating the low end of our guidance range of 0.5 to 2.5 percent. CASM ex-fuel growth was driven by ongoing Structural Cost Program benefits, but also benefited by a half point of timing as expenses shift to the fourth quarter,” said Steve Priest, JetBlue’s EVP Chief Financial Officer.

“I’m thrilled with the progress we are making on better controlling our cost growth. We entered the fourth quarter ahead of plan for the year, and are well on pace to beat the mid-point of our original full year 2019 cost guidance of 1.0 percent. We now estimate our CASM ex-Fuel guide for 2019 should range between 0.5 and 1.0 percent.

I’m proud of the efforts of our team to overcome lower scheduled capacity growth, manage through runway construction in Fort Lauderdale and JFK, and manage the impact of NEO delays and hurricane Dorian. This is the result of relentless execution of our Structural Cost Program, and an outstanding focus on costs by the entire JetBlue team.”

Capital Allocation and Liquidity

JetBlue ended the quarter with approximately $994 million in unrestricted cash, cash equivalents, and short term investments, or 12.4% of trailing twelve month revenue. JetBlue repaid $76 million in regularly scheduled debt and capital lease obligations for the third quarter.

Fuel Expense and Hedging

The realized fuel price in the quarter was $2.06 per gallon, an 11% decline versus third quarter 2018 realized fuel price of $2.32.

JetBlue has entered into forward fuel derivative contracts to hedge its fuel consumption for the fourth quarter of 2019. Based on the forward curve as of October 11th, JetBlue expects an average all-in price per gallon of fuel of $2.07 in the fourth quarter of 2019.

Notes

(1) Note A provides a reconciliation of non-GAAP financial measures used in this release and provides the reasons management uses those measures.

Top Copyright Photo: JetBlue Airways Airbus A320-232 N632JB (msn 2647) (Boston Bruins) LGB (Michael B. Ing). Image: 947651.

JetBlue Airways aircraft slide show:

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JetBlue relocates in Houston with move to George Bush Intercontinental Airport and adds new route to Costa Rica

JetBlue Airways Airbus A320-232 N584JB (msn 2149) (Highrise) LGB (Michael B. Ing). Image: 946259.

JetBlue Airways today announced that the airline’s operations in Houston will relocate from William P. Hobby Airport (HOU) to George Bush Intercontinental Airport (IAH) later this year.

The final day of flying at Hobby Airport will be on October 26, 2019 and the first day of flying at Bush Intercontinental will be on October 27, 2019. JetBlue plans to operate from Bush Intercontinental’s Terminal A.

Schedule between New York (JFK) and Houston (IAH)
Beginning October 27, 2019

JFK – IAH Flight #1381

IAH – JFK Flight #1382

1:00 p.m. – 4:10 p.m.

11:13 a.m. – 3:35 p.m.

Schedule between Boston (BOS) and Houston (IAH)
Beginning October 27, 2019

BOS – IAH Flight #1931

IAH – BOS Flight #1932

7:00 a.m. – 10:13 a.m.

4:55 p.m. – 9:32 p.m.

 

Connecting Costa Rica with New York-JFK

JetBlue today also announced it will introduce new nonstop service between New York’s John F. Kennedy Airport (JFK) and San José, Costa Rica’s Juan Santamaría International Airport (SJO) beginning November 1, 2019. Service will operate three times weekly on Fridays, Sundays and Tuesdays.

New York-JFK service in San José will complement JetBlue’s daily service between Costa Rica’s capital and the airlines’ focus cities in Fort Lauderdale/Hollywood and Orlando. Additionally, JetBlue also offers nonstop service, including seasonal Mint flights, to Liberia, Costa Rica from the airline’s home at New York-JFK. JetBlue first began serving Costa Rica with San José service more than a decade ago in March 2009.

Schedule between New York (JFK) and San José (SJO)
On Fridays, Sundays and Tuesdays Beginning November 1, 2019

JFK – SJO Flight #1793

SJO – JFK Flight #1794

6:25 p.m. – 10:50 p.m.

11:59 p.m. – 6:09 a.m. (+1)

JetBlue will operate both Houston and San José flights using its Airbus A320 aircraft.

Top Copyright Photo: JetBlue Airways Airbus A320-232 N584JB (msn 2149) (Highrise) LGB (Michael B. Ing). Image: 946259.

JetBlue aircraft slide show:

Business Insider: American Airlines CEO reveals why he engineered 2 of the biggest airline mergers in the last 20 years

From Business Insider:

American Airlines’ current CEO, Doug Parker, originally was the CEO of America West Airlines when he saw an opportunity to grow the company when he saw weakness in a struggling fellow carrier. He acquired and merged bankrupt US Airways with America West. The more appropriate US Airways name and brand was adopted.

Next, another opportunity came when American Airlines went into bankruptcy. Parker orchestrated a buyout and strategic merger of US Airways with American Airlines when it came out of bankruptcy. Once again the larger company’s name was adopted. As a result of the merger, the current day American Airlines is the largest airline in the world.

Peal the paint away of some AA Airbus A320s and you will find the America West roots.

This is really the story of how upstart America West Airlines (a new airline of the deregulation era) under CEO Doug Parker became the largest airline in the world through two acquisitions and two name adoptions.

Read the full story.

America West Airlines Airbus A320-232 N657AW (msn 1083) LAX (Bruce Drum). Image: 101107.

Above Copyright Photo: America West Airlines Airbus A320-232 N657AW (msn 1083) LAX (Bruce Drum). Image: 101107.

America West Airlines aircraft slide show:

America West September 7, 2005 Route Map:

JetBlue announces its first quarter 2019 results

"My Other Ride is A JetBlue E190"

JetBlue Airways Corporation today reported its results for the first quarter 2019:

  • Reported diluted earnings per share of $0.14 in the first quarter of 2019 compared to $0.28 in the first quarter of 2018. Adjusted diluted earnings per share was $0.16 in the first quarter of 2019 versus $0.26 in the first quarter of 2018. Note A to this earnings release includes the GAAP to Non-GAAP reconciliation between reported and adjusted diluted earnings per share.
  • GAAP pre-tax income of $58 million, a decline of 48.5% from $113 million in the first quarter of 2018. Excluding the one-time costs, adjusted pre-tax income of $70 million(1), a decline of 38.2% from the first quarter of 2018.
  • Pre-tax margin of 3.1%, inclusive of the one-time costs, a 3.3 point decline from the first quarter of 2018. Adjusted pre-tax margin of 3.7%(1), a 2.7 percentage point decline year over year.

 

Highlights from the First Quarter 2019

  • First quarter 2019 revenue per available seat mile (RASM) declined 3.1%, year over year, driven by holiday calendar placement, improved completion factor and certain areas of softness observed in the trough period. Excluding the 0.75 point impact from high completion factor, RASM declined 2.4% year over year, slightly better than the mid-point of our guidance range of down (3.5%) to down (1.5%).
  • Operating expenses per available seat mile, excluding fuel (CASM ex-fuel) (1) increased 0.9%, below the low end of our initial guidance range of 1.5% to 3.5%. This increase includes a benefit of approximately 0.75 points from improved completion factor.

Key Guidance for the Second Quarter and Full Year 2019:

  • Capacity is expected to increase between 4.5% and 6.5% year over year in the second quarter 2019. For the full year 2019, JetBlue expects capacity to increase between 4.5% and 6.5%.
  • RASM growth is expected to range between 1.0% and 4.0% for the second quarter 2019 compared to the same period in 2018. Our guidance includes a benefit of 2.25 points of impact related to the calendar placement shift of Easter and Passover between the first and second quarters of 2019.
  • CASM ex-fuel is expected to increase between 1.5% and 3.5% for the second quarter of 2019, principally driven by engine maintenance timing and the year-over-year impact of the pilot contract effective on August 1st, 2018. For the full year 2019, JetBlue continues to expect year over year CASM ex-fuel to be between flat and 2.0%.

Executing our Plan to Reach our EPS Commitments

“We are very proud of our team and the work they do every day to deliver the JetBlue experience. This quarter our financial performance was mainly impacted by the calendar placement of Easter and Passover holidays and, as disclosed in March, a softer revenue environment than initially expected,” said Robin Hayes, JetBlue’s Chief Executive Officer.

“In recent years we have repeatedly demonstrated our ability to adapt to the changing environment around us to achieve our margin commitments – and 2019 is proving to be no different. We believe we will successfully execute our five ‘building blocks’ introduced at our 2018 Investor Day, and we remain committed to our goal of delivering earnings per share between $2.50 and $3 dollars by 2020. We also continue to expect margin expansion in 2019, and to further expand our margins in 2020.”

“We believe our work will position us for success into the next decade. Next year we anticipate the first delivery of our margin-accretive A220s, a game-changing aircraft to further help us reduce our unit costs, improve our margins and increase our EPS. We are thrilled that we recently converted 13 A321s in our order book to A321 LRs, and we expect to begin our European service by adding London from Boston and New York starting in 2021,” said Joanna Geraghty, JetBlue’s President and Chief Operating Officer.

Revenue Performance and Outlook

First quarter RASM declined 3.1% year over year. Excluding the 0.75 point headwind from improved completion factor, RASM was slightly better than the mid-point of our guidance range of down (3.5%) to down (1.5%). “Our RASM was negatively impacted by three drivers: this year’s holiday calendar placement, improved completion factor, and certain areas of softness we observed in the trough period,” said Marty St. George, JetBlue’s EVP Commercial and Planning.

“Looking into the second quarter, we expect RASM growth between 1.0% and 4.0% year over year. Our guidance includes an anticipated 2.25 point positive impact of Easter/Passover holiday placement shift into April. March RASM showed clear signs of a weaker trough, which extended into the first half of April. The April peak, however, is showing the strength we had expected, and very early look at May and June points to sequential RASM acceleration.”

Cost Performance, Outlook and Balance Sheet

“Our first quarter CASM ex-fuel represents a unit cost increase below the mid-point of our guidance range. For the second quarter, we expect CASM ex-fuel growth to range between 1.5% and 3.5%. As a reminder, both our first quarter and second quarter guidance include an approximately three-point impact from our pilot contract signed last August,” said Steve Priest, JetBlue’s EVP Chief Financial Officer.

“We could not be prouder of the hard work across JetBlue to deliver on our commitments to hit our goals. We are encouraged by the CASM ex-fuel progress we made in the first quarter, and the progression we anticipate for the rest of the year. In the first half we will continue to digest our first pilot contract, and despite our capacity reduction from early March, our guidance range remains between 0 and 2 percent.”

Capital Allocation and Liquidity

JetBlue ended the quarter with approximately $876 million in unrestricted cash, cash equivalents, and short term investments, or about 11.3% of trailing twelve month revenue. In addition, at the end of the quarter, JetBlue maintained approximately $625 million in undrawn lines of credit. JetBlue repaid $133 million in regularly scheduled debt and capital lease obligations for the first quarter.

Fuel Expense and Hedging

The realized fuel price in the quarter was $2.05 per gallon, a 2.0% decline versus first quarter 2018 realized fuel price of $2.09.

JetBlue entered into forward fuel derivative contracts to hedge approximately 7% of its fuel consumption for the second quarter of 2019. Based on the fuel curve as of April 12th, JetBlue expects an average all-in price per gallon of fuel of $2.21 in the second quarter of 2019.

Top Copyright Photo (all others by the airline): JetBlue Airways Airbus A320-232 N793JB (msn 4647) (Highrise) LGB (Michael B. Ing). Image: 946262.

JetBlue Airways aircraft slide show:

Laudamotion introduces new crew uniforms, will go by Lauda

Delivered on February 8, 2019

Laudamotion has introduced new uniforms for its crew members. As its new livery reflects, the carrier will officially shorten its name to Lauda.

The carrier is also expanding, especially between Germany and Palma de Mallorca in coordination with Ryanair.

Top Copyright Photo: Lauda – laudamotion.com Airbus A320-232 OE-IHL (msn 3105) PMI (Javier Rodriguez). Image: 945746.

Lauda aircraft slide show:

Video:

JetBlue starts Fort Lauderdale/Hollywood – Guayaquil, Ecuador service

JetBlue Airways Airbus A320-232 N623JB (msn 2504) (jetBlue Vacations) FLL (Bruce Drum). Image: 104920.

JetBlue Airways today announced the start of new service in Guayaquil, Ecuador, with the first flight arriving in the South American city just before 11 p.m. local time last night and the first northbound leg of the route arriving in South Florida just after 5 a.m. today.

New service between Fort Lauderdale-Hollywood International Airport (FLL) and Guayaquil’s José Joaquín de Olmedo International Airport (GYE) operates daily and brings JetBlue to a sixth destination in South America.

New service between Fort Lauderdale and Guayaquil will be operated on JetBlue’s Airbus A320 aircraft.

Top Copyright Photo (all others by the airline): JetBlue Airways Airbus A320-232 N623JB (msn 2504) (jetBlue Vacations) FLL (Bruce Drum). Image: 104920.

JetBlue Airways aircraft slide show:

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Wizz Air expands in Kutaisi, Georgia with six new routes

Wizz Air (wizzair.com) (Hungary) Airbus A320-232 HA-LWB (msn 4246) BSL (Paul Bannwarth). Image: 945385.

Wizz Air has announced the allocation of a third Airbus A320 aircraft to its Kutaisi base as well as the start of six long awaited new services from Kutaisi, Georgia to Eindhoven, Bari, Copenhagen, Basel-Mulhouse-Freiburg, Tallinn and Charleroi. 

Wizz started operations from Kutaisi International Airport in 2012 and after 7 years of successful operations, and only 8 month after allocating its second aircraft to the Kutaisi base, the airline announced further great expansion at its Georgian base by allocating a third Airbus A320 aircraft in August 2019.

WIZZ AIR’S NEW ROUTES FROM KUTAISI

New routes Frequency Start date Fares from*
Eindhoven Tuesday, Thursday, Saturday 1 August 2019 GEL 56.99 / EUR 19.99
Bari Thursday, Sunday 1 August 2019 GEL 56.99 / EUR 19.99
Copenhagen Monday, Friday 2 August 2019 GEL 56.99 / EUR 19.99
Basel-Mulhouse-Freiburg Monday, Friday 2 August 2019 GEL 56.99 / EUR 19.99
Tallinn Wednesday, Sunday 4 August 2019 GEL 56.99 / EUR 19.99
Brussels – Charleroi Wednesday, Sunday 4 August 2019 GEL 56.99 / EUR 19.99

* One way including all taxes and non-optional charges

Top Copyright Photo: Wizz Air (wizzair.com) (Hungary) Airbus A320-232 HA-LWB (msn 4246) BSL (Paul Bannwarth). Image: 945385.

Wizz Air aircraft slide show:

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