JetBlue Airways Corp (NASDAQ: JBLU) reported a second-quarter FY22 adjusted loss per share of $(0.47) compared to adjusted EPS of $0.60 in 2Q19, missing the consensus of $(0.11).
Operating revenue grew 16.1% compared to 1Q19 and +63.1% year-over-year to $2.45 billion, missing the consensus of $2.46 billion.
Capacity increased by 2.3% year over three, compared to guidance of an increase of 2% to 3% year over three.
Operating expenses per available seat mile increased 34.7% year over three.
Operating expenses per available seat mile, excluding fuel and special items (CASM ex-fuel), increased 14.5% year over three, compared to guidance of 15% to 17%.
The adjusted operating margin recovered to -2.8% from -12% in 2Q19.
On the recent merger agreement with Spirit Airlines, Inc (NYSE: SAVE), JetBlue expects to achieve $600 million-700 million in net annual synergies once the integration is complete and expects the transaction to be significantly accretive to EPS in the first full year following closing.
“I’m very pleased we found a path forward with Spirit, and we can’t wait to welcome their incredible 10,000 Team Members to JetBlue as we create a true, national low-fare challenger to the dominant ‘Big Four’ airlines. Together we will expand our uniquely disruptive combination of award-winning service and competitive low fares to more customers across the country as we combine the best of both airlines,” said CEO Robin Hayes.
The load factor improved to 85.1% from 79.2% a year ago. The realized fuel price in the quarter was $4.24 per gallon, a 97% increase versus the 2Q19.
JetBlue expects an average all-in price per gallon of fuel of $3.68 in 3Q22.
As of June 30, 2022, JetBlue’s adjusted debt to capital ratio was 54%. It held ~$2.6 billion in cash and equivalents.
3Q22 Outlook: JetBlue expects unit revenue to increase 19% - 23%. It expects CASM ex-Fuel to grow 15% - 17%. Capacity is expected to be flat to negative 3%.
FY22 Outlook: JetBlue expects capacity growth between 0% and 3% versus 2019, and CASM ex-Fuel to increase in the range of 11% to 14% versus 2019.
Price Action: JBLU shares traded lower by 4.66% at $8.19 during the premarket session on Tuesday.
Photo Via Wikimedia Commons
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