JetBlue Airways Corporation
The air carrier reported an adjusted loss per share of $0.16, beating the consensus loss of $0.26 and compared to a $0.39 loss reported a year ago.
JetBlue reported operating revenue of $2.365 billion, up 0.51% year over year and beating the consensus of $2.34 billion. Third-quarter system capacity decreased by 3.6% year over year.
The operating margin for the quarter improved by 5 points to negative 1.6% from negative 6.6% a year ago, and the adjusted operating margin stood at negative 0.4%, up from negative 5.2% last year.
Operating expenses for the quarter declined by 4.2% to $2.403 billion, while the operating expenses per available seat mile (CASM) declined 0.7% YoY.
Operating expenses per available seat mile, excluding fuel, other non-airline operating expenses, and special items, increased 4.8% year-over-year.
JBLU's Average fuel price in the third quarter was $2.67 per gallon, down from $3.04 a year ago.
The airline ended the quarter with ~$4.1 billion in liquidity, excluding an undrawn $600 million revolving credit facility.
JBLU delivered improved operational performance year-over-year with a completion factor of 98%, up from 96% YoY.
During the quarter, JBLU also signed an agreement with World Fuel Services and Valero Energy to supply New York's first ongoing sustainable aviation fuel, starting in 2024.
"Our number one goal remains returning to operating profitability, and growing our unit revenue is imperative to reach operating profitability. As underlying trends from the third quarter have broadly continued into the fourth quarter so far, we expect unit revenue growth to remain positive and sequentially consistent when adjusting for the CrowdStrike benefit in the third quarter and the negative impacts of Hurricane Milton and the election in the fourth quarter. As we look to 2025, I am encouraged by the backdrop for our revenue performance to continue improving, particularly as additional JetForward initiatives begin yielding benefits," commented Marty St. George, JetBlue's president.
JetBlue CFO Ursula Hurley highlighted the five-point third-quarter operating margin improvement, driven by stronger revenue, operational gains, and lower fuel costs. Hurley confirmed progress on the full-year CASM ex-fuel target, with strategic financing bolstering liquidity for the JetForward strategy. She expressed confidence in achieving the 2024 EBIT target of $800-$900 million.
Q4 Guidance: JetBlue anticipates a year-over-year revenue drop 7% to 3%; Available Seat Miles (ASMs) to decrease by 7% to 4% YoY.
CASM ex-fuel is projected to rise 13% to 15%, and the expected fuel price per gallon is between $2.50 - $2.65.
2024 Guidance, updated: JetBlue anticipates a year-over-year revenue drop of 5% - 4% (prior 6% - 4%); Available Seat Miles (ASMs) are expected to decrease by 4.5% - 2.5% (prior view 5% - 2.5% YoY)
2024 CASM ex-fuel is expected to increase by 7% - 8% (prior 6.5% - 8.5%); the projected fuel price per gallon is between $2.75 - $2.80.
Price Action: JBLU shares are trading lower by 14.2% to $6.28 at the last check Tuesday.
