U.S. Markets closed
  • S&P 500

    4,432.99
    -40.76 (-0.91%)
     
  • Dow 30

    34,584.88
    -166.44 (-0.48%)
     
  • Nasdaq

    15,043.97
    -137.96 (-0.91%)
     
  • Russell 2000

    2,236.87
    +3.96 (+0.18%)
     
  • Crude Oil

    71.96
    -0.65 (-0.90%)
     
  • Gold

    1,753.90
    -2.80 (-0.16%)
     
  • Silver

    22.42
    -0.33 (-1.44%)
     
  • EUR/USD

    1.1732
    -0.0040 (-0.3402%)
     
  • 10-Yr Bond

    1.3700
    +0.0390 (+2.93%)
     
  • Vix

    20.81
    +2.12 (+11.34%)
     
  • GBP/USD

    1.3737
    -0.0059 (-0.4286%)
     
  • USD/JPY

    109.8950
    +0.1770 (+0.1613%)
     
  • BTC-USD

    48,616.39
    +1,234.09 (+2.60%)
     
  • CMC Crypto 200

    1,193.48
    -32.05 (-2.62%)
     
  • FTSE 100

    6,963.64
    -63.84 (-0.91%)
     
  • Nikkei 225

    30,500.05
    +176.71 (+0.58%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

JetBlue Airways (JBLU) Posts Narrower-Than-Expected Q2 Loss

·5 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

JetBlue AirwaysJBLU incurred a second-quarter 2021 loss (excluding 84 cents from non-recurring items) of 64 cents per share, comparing favorably with the Zacks Consensus Estimate of a loss of 73 cents. This was the sixth successive quarterly loss posted by this currently Zacks Rank #3 (Hold) low-cost carrier. Quarterly loss per share was also narrower than the year-ago loss of $2.02. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Operating revenues of $1,499 million skyrocketed 597.7% year over year and also surpassed the Zacks Consensus Estimate of $1,441.3 million. This massive year-over-year jump reflects improving air-travel demand as more and more people take to the skies following widespread vaccination. Revenues soared 104.5% sequentially. However, compared with the second-quarter 2019 actuals, quarterly revenues declined 29%

Passenger revenues, which accounted for bulk of the top line (92.6%), increased to $1,388 million in second-quarter 2021 from a mere $170 million a year ago when the impact of coronavirus on air-travel demand was much severe. Other revenues surged in excess of 100% to $111 million.

Other Details

All comparisons are presented on a year-over-year basis. Revenue per available seat mile (RASM: a key measure of unit revenues) in the reported quarter improved 23.4% to 10.99 cents. Passenger revenue per available seat mile (PRASM) increased 44.2% to 10.18 cents owing to better air-travel demand. Average fare at JetBlue during the quarter decreased 36.9% to $174.47. Yield per passenger mile dropped 38.5% year over year to 12.82 cents.

Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) skyrocketed 1224% in the reported quarter. To cater to this increased demand, capacity (measured in available seat miles) expanded to 13,645 million from 2,413 million. Consolidated load factor (percentage of seats filled by passengers) increased 45.4 percentage points to 79.2% in the second quarter of 2021.

In the second quarter, total operating expenses (on a reported basis) increased 116.3% to $336 million, mainly due to a 1052% rise in aircraft fuel and related taxes. Average fuel price per gallon (including related taxes) climbed to $1.91 from 96 cents a year ago as oil prices move north.

JetBlue’s operating expenses per available seat mile (CASM) fell 61.7% to 9.91 cents. Excluding fuel, the metric declined 72.8% to 10.05 cents.

JetBlue exited the second quarter of 2021 with cash and cash equivalents of $2,409 million compared with $1,918 million at the end of 2020. Total debt at the end of the reported quarter was $4,430 million compared with $4,863 million at 2020 end.

The carrier exited the September quarter with $3.7 billion of unrestricted cash, cash equivalents and short-term investments.

Outlook

Revenues for the third quarter of 2021 are expected to decline in the 4-9% range from the third-quarter 2019 actuals. Capacity is anticipated to be either flat or decline up to 3% in the September quarter from the figure reported in the third quarter of 2019. Average fuel cost per gallon in the September quarter is estimated to be $2.09.  

Adjusted EBITDA is expected in the range of $75-$175 million. Management expects to remain in the positive EBITDA territory through the end of the year and anticipates to generate pre-tax profits in July and August. CASM (ex-fuel) is expected to increase in the 11-13% band in the September quarter from the recorded third-quarter 2019 levels.

How Other Airlines Fared

Let’s take a look at some of the other recently-released earnings reports of companies from within the Zacks Airline industry.

United Airlines UAL incurred a loss (excluding $2.57 from non-recurring items) of $3.91 per share in the second quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $4.17. Operating revenues of $5,471 million surpassed the Zacks Consensus Estimate of $5,306.9 million. 

American Airlines AAL incurred a loss (excluding $1.72 from non-recurring items) of $1.69 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $1.71. Quarterly loss per share was also narrower than the year-ago loss of $7.82. Operating revenues of $7,478 million skyrocketed 361.04% year over year and also surpassed the Zacks Consensus Estimate of $7,425.6 million. 

Alaska Air Group ALK, the parent company of Alaska Airlines, incurred a loss (excluding $3.45 from non-recurring items) of 30 cents per share, narrower than the Zacks Consensus Estimate of a loss of 31 cents. In the year-ago quarter, the company incurred a loss of $3.54 per share. Operating revenues of $1,527 million skyrocketed 262.71% year over year. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

United Airlines Holdings Inc (UAL) : Free Stock Analysis Report

JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report

American Airlines Group Inc. (AAL) : Free Stock Analysis Report

Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research