Record first quarter revenue and continued cost execution
Reaffirming FY23 earnings outlook
JetBlue Airways Corporation (NASDAQ: JBLU) reported its results for the first quarter of 2023.
“Thanks to our team's collective hard work, our first quarter financial results came in better than expectations, and we are forecasting strong sequential pre-tax margin improvement into the second quarter. We remain well on track in executing our comprehensive plan to enhance our long-term profitability and restore our historical earnings power,” said Robin Hayes, JetBlue’s Chief Executive Officer.
“For the second quarter, we expect strong revenue growth to continue as demand remains robust and as we see continued momentum from our commercial initiatives. We are forecasting a solidly profitable quarter, and we remain confident in our full-year earnings outlook.”
First Quarter 2023 Financial Results
- Net loss for the first quarter of 2023 under Generally Accepted Accounting Principles (GAAP) of $(192) million or $(0.58) per share. Excluding one-time items, adjusted net loss for the first quarter of $(111) million(1) or $(0.34) per share.
- First quarter of 2023 capacity increased by 9.0% year-over-year.
- Generated highest first quarter revenue in history. Operating revenue of $2.3 billion for the first quarter of 2023, up 34.1% year-over-year.
- Operating expenses per available seat mile (CASM) for the first quarter of 2023 increased 12.1% 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 first quarter of 2023 increased 1.2%(1) year-over-year.
- Average fuel price in the first quarter of 2023 of $3.50 per gallon, including hedges.
Balance Sheet and Liquidity
- $1.7 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).
- Adjusted debt to capital ratio of 53%(1) as of March 31, 2023.
- Paid approximately $109 million in debt and finance lease obligations during the first quarter of 2023.
First Quarter 2023 Key Highlights
- Reported adjusted EPS for the first quarter of 2023 which exceeded guidance, with strong operational and financial execution. First quarter revenue was approximately 4% points better than the midpoint of initial outlook, and CASM ex-Fuel was 1.8% points better than the midpoint of initial outlook.
- Announced the planned launch of new service later this summer from New York's John F. Kennedy International Airport and Boston Logan International Airport to Amsterdam Airport Schiphol, JetBlue's third transatlantic market debut.
- Announced our plan to further expand in Florida, following our planned combination with Spirit, to reach more than 250 daily flights at Fort Lauderdale-Hollywood International Airport (FLL) and 200 daily flights at Orlando International Airport, supporting significant job creation in Florida.
- Opened Paisly hotel and car rental booking tool to any travelers independent of a JetBlue itinerary.
- Announced a leading Shell Aviation agreement for the delivery of 10 million gallons of blended sustainable aviation fuel (SAF) – at Los Angeles International Airport (LAX) over the next two years beginning in the first half of 2023, with an option to purchase more.
- Acted as the only airline to help execute the first-ever collective purchase of SAF certificates alongside Bank of America, Boom Supersonic, Boston Consulting Group, JPMorgan Chase & Co., Meta and clean energy nonprofit, RMI.
- Rated by leading shareholder advisory firm ISS in its Tier 1 category for high performance against industry peers with respect to our management of “Carbon and Climate,” as a result of our recent Science Based Target to reduce GHG emissions (by 50% per revenue ton kilometer by 2035, as compared to 2019).
- Recognized by Newsweek as one of America's greatest workplaces for women and for diversity, earning 4.5 and 5 stars, respectively.
- Brought our signature Fly Like a Girl Campaign to Fort Lauderdale for the first time to support Women’s History Month, which brought ~100 young children together to learn about career opportunities in aviation.
Outlook
“Demand trends remain robust into the second quarter, with strong demand for leisure and visiting-friends-and-relatives (VFR) travel particularly during peak periods. We're also pleased with the continued improvement in revenue and financial performance at our largest focus city, New York,” said Joanna Geraghty, JetBlue’s President and Chief Operating Officer.
“Our TrueBlue Loyalty program continues to show encouraging trends with strong growth in co-brand card spend. In addition, the Northeast Alliance (NEA), which is already a significant revenue generator, is driving meaningful margin improvement as our service matures.”
| Second Quarter and Full-Year 2023 Outlook | Estimated 2Q 2023 | Estimated FY 2023 | |||
| Available Seat Miles (ASMs) Year-Over-Year | 4.5% – 7.5% | 5.5% – 8.5% | |||
| Revenue Year-Over-Year | 4.5% – 8.5% | High Single Digits to Low Double Digits | |||
| CASM Ex-Fuel(2) (Non-GAAP) Year-Over-Year | 1.5% – 3.5%(3) | 1.5% – 4.5%(3) | |||
| Estimated Fuel Price per Gallon(4) | $2.75– $2.90(5) | $2.95 – $3.15 | |||
| Interest Expense | $40 – $50 million | $200 – $210 million | |||
| Adjusted Earnings per Share | $0.35 – $0.45 | $0.70 – $1.00 |
“We continue to deliver on our financial commitments and focus on the areas we can control. Thanks to the outstanding efforts of our crewmembers, we have met or exceeded our quarterly cost guidance for the fifth consecutive quarter. Coming out of the first quarter, I’m excited about the trajectory of the business as margins grow to near pre-pandemic levels later in the year,” said Ursula Hurley, JetBlue’s Chief Financial Officer.
Earnings Call Details
JetBlue will conduct a conference call to discuss its quarterly earnings, April 25, 2023 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 First Quarter 2023 Earnings Presentation available via the internet at http://investor.jetblue.com.
