JetBlue Airways ( JBLU Quick Quote JBLU - Free Report) incurred a third-quarter 2020 loss (excluding 31 cents from non-recurring items) of $1.75 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $1.91. Results were hurt by the coronavirus-induced weakness in air-travel demand. However, sentiments were bullish in the year-ago period when the company delivered earnings of 59 cents per share owing to strong air-travel demand. Moreover, operating revenues of $492 million plunged 76.4% year over year and lagged the Zacks Consensus Estimate of $504.8 million. This steep year-over-year fall was due to the 77.8% decrease in passenger revenues, which accounted for bulk (90.4%) of the top line. Revenues from other sources declined 42% to $47 million. The lackluster earnings report naturally disappointed investors. Consequently, shares of the company declined 5.4% on Oct 27 to $11.88. Other Details Revenue per available seat mile (RASM: a key measure of unit revenues) in the reported quarter dropped 44.4% to 7.12 cents. Passenger revenue per available seat mile (PRASM) fell 47.7% to 6.44 cents. Average fare at JetBlue during the quarter increased 14.1% to $206.7. Yield per passenger mile rose 4.9% year over year to 15.1 cents. Capacity, measured in available seat miles, contracted 57.6% year over year. Meanwhile, traffic, measured in revenue passenger miles, plunged 78.9% due to softness in air-travel demand. Load factor (percentage of seats filled by passengers) slumped to 42.6% from 85.5% a year ago as traffic decline was more than the capacity reduction in the reported quarter. In the third quarter, total operating expenses (on a reported basis) decreased 45.2% year over year, mainly owing to a 78.4% fall in aircraft fuel and related taxes. With major part of the fleet remaining grounded/under-utilized, fuel gallons consumed tanked 63.7% to 83 million. Average fuel cost per gallon (including fuel taxes) declined 40.4% year over year to $1.23. JetBlue’s operating expenses per available seat mile (CASM) rose 29.3% to 14.60 cents due to capacity cuts. Excluding fuel, the metric escalated 75.7% to 14.64 cents. JetBlue, currently carrying a Zacks Rank #3 (Hold), exited the third quarter with cash and cash equivalents of $2,453 million compared with $959 million at the end of 2019. Total debt at the end of the reported quarter was $4,839 million compared with $2,334 million at 2019-end. JetBlue exited the September quarter with approximately $3.1 billion in unrestricted cash, cash equivalents, and short-term investments, and restricted cash for CARES Act Payroll Support Program. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Management stated that due to various measures undertaken to combat the current pandemic-related crisis, the company lowered its cash burn to $6.1 million per day, on average, during the third quarter compared to the expected range of $7-$9 million calculated in late July. Outlook Revenues for the fourth quarter are expected to decline approximately 65% year over year. Capacity is anticipated to contract at least 45% year over year in the fourth quarter. JetBlue anticipates its average daily cash burn in the fourth quarter to range between $4 and $6 million. Average fuel cost per gallon in the December quarter is estimated to be $1.23. Sectorial Snapshot Apart from JetBlue , let’s take a look at some other Zacks Transportation sector’s third-quarter earnings like Delta Air Lines (and DAL Quick Quote DAL - Free Report) , J.B. Hunt Transport Services ( JBHT Quick Quote JBHT - Free Report) United Airlines Holdings, Inc. (. UAL Quick Quote UAL - Free Report) Delta incurred a loss (excluding $5.17 from non-recurring items) of $3.30 per share in the September quarter, wider than the Zacks Consensus Estimate of a loss of $3.14. Meanwhile, Delta reported earnings of $2.32 per share (on an adjusted basis) in the year-ago quarter, driven by high passenger revenues as air-travel demand was buoyant at that time. J.B. Hunt reported mixed third-quarter 2020 results, with earnings missing estimates and revenues beating the same. Quarterly earnings of $1.18 per share fell short of the Zacks Consensus Estimate of $1.26. Moreover, the bottom line declined 15.7% year over year due to disappointing performance of its intermodal (JBI) unit. Total operating revenues increased 4.6% to $2,472.5 million. Revenues also beat the consensus mark of $2,345.2 million. United Airlines incurred a loss (excluding $1.83 from non-recurring items) of $8.16 per share, wider than the Zacks Consensus Estimate of a loss of $7.63. Results were hurt by the coronavirus-induced weakness in air-travel demand. Moreover, operating revenues of $2,489 million slumped 78.1% year over year and also lagged the Zacks Consensus Estimate of $2,570.1 million. This year-over-year plunge was due to an 84.3% drop in passenger revenues to $1,649 million. Zacks’ 2020 Election Stock Report In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
Check out the 2020 Election Stock Report >>