Yahoo Finance JetBlue Airways (JBLU) Q1 Earnings & Revenues Beat Estimates
JetBlue Airways’ JBLU first-quarter 2023 loss (excluding 24 cents from non-recurring items) of 34 cents per share was narrower than the Zacks Consensus Estimate of a loss of 38 cents. In the year-ago quarter, JBLU incurred a loss of 80 cents per share.
Operating revenues of $2,328 million climbed 34.1% year over year and beat the Zacks Consensus Estimate of $2,322.5 million. The double-digit year-over-year jump reflected improving air-travel demand.
Passenger revenues, accounting for the bulk of the top line (93.7%), increased to $2,182 million in first-quarter 2023 from $1,603 million a year ago when air-travel demand was not so robust. Other revenues rose 9.4% to $146 million.
Other Details
All comparisons are presented on a year-over-year basis.
Revenue per available seat mile (a key measure of unit revenues) in the reported quarter improved 23% to 13.88 cents. Passenger revenue per available seat mile rose 24.9% to 13.01 cents owing to better air-travel demand.
Average fare at JetBlue during the March quarter increased 9.2% to $214.07. Yield per passenger mile shot up 11.2% to 16.31 cents.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) improved 22.4% in the quarter under review. To cater to this increased demand, capacity (measured in available seat miles) increased 9% to 16,769 million. Consolidated load factor (percentage of seats filled by passengers) increased 8.8 points to 79.8% as traffic growth outpaced capacity expansion.
In the March quarter, total operating expenses (on a reported basis) escalated 22.2% to $2,570 million, mainly due to a 34.1% rise in aircraft fuel expenses and related taxes. Average fuel price per gallon (including fuel taxes) climbed to $3.50 from $2.90 a year ago, as oil prices move north.
JBLU’s operating expenses per available seat mile (CASM) increased 12.1% to 15.32 cents. Excluding fuel, CASM inched up 1.2% to 9.99 cents.
JetBlue, currently carrying a Zacks Rank #3 (Hold), exited the March quarter with cash and cash equivalents of $1,333 million compared with $1,042 million at the end of 2022. Total debt at the end of the reported quarter was $3,579 million compared with $3,647 million at 2022 end. During the quarter, JBLU paid off $109 million of debt and finance lease obligations.
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Outlook
While providing guidance for second-quarter 2023, management stated that all comparisons are made with respect to second-quarter 2022 figures.
Capacity is anticipated to increase in the 4.5-7.5% range. CASM, excluding fuel and special items, is predicted to rise 1.5-3.5%.
Total revenues are forecast to increase in the 4.5-8.5% range. Average fuel cost per gallon in the June quarter is estimated to be between $2.75 and $2.90.
Interest expense is forecast in the $40-$50 million range. Management expects second-quarter 2023 earnings in the range of 35-45 cents per share. The Zacks Consensus Estimate is currently pegged at 25 cents per share.
For full-year 2023, capacity is expected to increase in the band of 5.5-8.5% from the 2022 actuals. CASM, excluding fuel and special items, is predicted to rise 1.5-4.5% from the 2022 actuals. Current-year interest expense is forecast in the $200-$210 million band.
Total revenues for 2023 are forecast to increase year over year in the high single-digit to low double-digit range. Management expects 2023 earnings per share to be between 70 cents and $1.00. The Zacks Consensus Estimate is currently pegged at 54 cents. Capital expenditure is projected around $1.3 billion.
Q1 Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s JBHT first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively. A decline of 17% in revenue per load in Truckload (JBT) also added to the woes.
Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ DAL first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Alaska Air Group, Inc. ALK reported first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.
ALK’s operating revenues of $2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% owing to continued recovery in air-travel demand.
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