JetBlue Airways (JBLU - Free Report) incurred a first-quarter 2021 loss (excluding 70 cents from non-recurring items) of $1.48 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $1.62.
Results were hurt by the coronavirus-induced weakness in air-travel demand. Notably, this is the fifth successive quarterly loss posted by the currently Zacks Rank #3 (Hold) low-cost carrier. In the first quarter of 2020, JetBlue reported a quarterly loss of 42 cents per share.
Moreover, in first-quarter 2021, operating revenues of $733 million plunged 53.8% year over year due to the 55.7% decrease in passenger revenues, which accounted for bulk (91.4%) of the top line. Revenues from other sources also declined 18% to $63 million. The top line, however, surpassed the Zacks Consensus Estimate of $716.4 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 dropped 24.5% to 8.06 cents. Passenger revenue per available seat mile (PRASM) fell 27.5% to 7.36 cents. Average fare at JetBlue during the quarter declined 19.1% to $149.97. Yield per passenger mile dropped 20.8% year over year to 11.52 cents.
Capacity, measured in available seat miles, contracted 39%. Traffic, measured in revenue passenger miles, plummeted 44.1% due to softness in air-travel demand. Load factor (percentage of seats filled by passengers) fell to 63.9% from 69.8% a year ago as traffic decline was more than the capacity reduction in the reported quarter.
In the first quarter, total operating expenses (on a reported basis) decreased 46.6% year over year, mainly owing to a 47% fall in aircraft fuel and related taxes. With major part of the fleet remaining grounded/under-utilized, fuel gallons consumed tanked 42.8% to 112 million.
Average fuel cost per gallon (including fuel taxes) declined 7.4% to $1.72. JetBlue’s operating expenses per available seat mile (CASM) fell 12.5% to 11.30 cents. Excluding fuel, the metric escalated 36% to 12.25 cents.
JetBlue exited the first quarter of 2021 with cash and cash equivalents of $2,358 million compared with $1,918 million at the end of 2020. Total debt at the end of the reported quarter was $5,082 million compared with $4,863 million at 2020 end.
The carrier exited the March quarter with $3.2 billion in unrestricted cash, cash equivalents and short-term investments. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
Revenues for the second quarter of 2021 are expected to decline in the 30-35% range from the second-quarter 2019 actuals. Capacity is anticipated to contract at least 15% in the June quarter from the figure reported in the second quarter of 2019. Operating expenses are expected to be roughly 8% down from the recorded second-quarter 2019 levels. Average fuel cost per gallon in the June quarter is estimated to be $1.87. EBITDA is expected in the range of a negative $100-$200 million. The company expects to reach breakeven in the third quarter of 2021, on an EBITDA basis.
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 - Free Report) incurred a loss (excluding $3.21 from non-recurring items) of $7.5 per share in the first quarter of 2021, wider than the Zacks Consensus Estimate of a loss of $6.97. This is the fifth consecutive quarterly loss incurred by the company as coronavirus continues to weigh on air-travel demand. Operating revenues of $3,221 million also fell short of the Zacks Consensus Estimate of $3,253.1 million.
Delta Air Lines’ (DAL - Free Report) first-quarter 2021 loss (excluding $1.70 from non-recurring items) of $3.55 per share was wider than the Zacks Consensus Estimate of $3.08 as well as the first-quarter 2020 loss of 51 cents.
American Airlines (AAL - Free Report) incurred a loss (excluding $2.35 from non-recurring items) of $4.32 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $4.35. However, quarterly loss per share was wider than the year-ago loss of $2.65. Moreover, operating revenues of $4,008 million slumped 52.9% year over year and also fell shy of the Zacks Consensus Estimate of $4,031 million
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JetBlue Airways (JBLU - Free Report) incurred a first-quarter 2021 loss (excluding 70 cents from non-recurring items) of $1.48 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $1.62.
Results were hurt by the coronavirus-induced weakness in air-travel demand. Notably, this is the fifth successive quarterly loss posted by the currently Zacks Rank #3 (Hold) low-cost carrier. In the first quarter of 2020, JetBlue reported a quarterly loss of 42 cents per share.
Moreover, in first-quarter 2021, operating revenues of $733 million plunged 53.8% year over year due to the 55.7% decrease in passenger revenues, which accounted for bulk (91.4%) of the top line. Revenues from other sources also declined 18% to $63 million. The top line, however, surpassed the Zacks Consensus Estimate of $716.4 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 dropped 24.5% to 8.06 cents. Passenger revenue per available seat mile (PRASM) fell 27.5% to 7.36 cents. Average fare at JetBlue during the quarter declined 19.1% to $149.97. Yield per passenger mile dropped 20.8% year over year to 11.52 cents.
Capacity, measured in available seat miles, contracted 39%. Traffic, measured in revenue passenger miles, plummeted 44.1% due to softness in air-travel demand. Load factor (percentage of seats filled by passengers) fell to 63.9% from 69.8% a year ago as traffic decline was more than the capacity reduction in the reported quarter.
In the first quarter, total operating expenses (on a reported basis) decreased 46.6% year over year, mainly owing to a 47% fall in aircraft fuel and related taxes. With major part of the fleet remaining grounded/under-utilized, fuel gallons consumed tanked 42.8% to 112 million.
Average fuel cost per gallon (including fuel taxes) declined 7.4% to $1.72. JetBlue’s operating expenses per available seat mile (CASM) fell 12.5% to 11.30 cents. Excluding fuel, the metric escalated 36% to 12.25 cents.
JetBlue exited the first quarter of 2021 with cash and cash equivalents of $2,358 million compared with $1,918 million at the end of 2020. Total debt at the end of the reported quarter was $5,082 million compared with $4,863 million at 2020 end.
The carrier exited the March quarter with $3.2 billion in unrestricted cash, cash equivalents and short-term investments. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
Revenues for the second quarter of 2021 are expected to decline in the 30-35% range from the second-quarter 2019 actuals. Capacity is anticipated to contract at least 15% in the June quarter from the figure reported in the second quarter of 2019. Operating expenses are expected to be roughly 8% down from the recorded second-quarter 2019 levels. Average fuel cost per gallon in the June quarter is estimated to be $1.87. EBITDA is expected in the range of a negative $100-$200 million. The company expects to reach breakeven in the third quarter of 2021, on an EBITDA basis.
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 - Free Report) incurred a loss (excluding $3.21 from non-recurring items) of $7.5 per share in the first quarter of 2021, wider than the Zacks Consensus Estimate of a loss of $6.97. This is the fifth consecutive quarterly loss incurred by the company as coronavirus continues to weigh on air-travel demand. Operating revenues of $3,221 million also fell short of the Zacks Consensus Estimate of $3,253.1 million.
Delta Air Lines’ (DAL - Free Report) first-quarter 2021 loss (excluding $1.70 from non-recurring items) of $3.55 per share was wider than the Zacks Consensus Estimate of $3.08 as well as the first-quarter 2020 loss of 51 cents.
American Airlines (AAL - Free Report) incurred a loss (excluding $2.35 from non-recurring items) of $4.32 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $4.35. However, quarterly loss per share was wider than the year-ago loss of $2.65. Moreover, operating revenues of $4,008 million slumped 52.9% year over year and also fell shy of the Zacks Consensus Estimate of $4,031 million
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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