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JetBlue Airways (JBLU) Posts Q4 Loss Amid Coronavirus Woes
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JetBlue Airways (JBLU - Free Report) incurred a fourth-quarter 2020 loss (excluding 19 cents from non-recurring items) of $1.53 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $1.72. 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 56 cents per share owing to strong air-travel demand.
Moreover, operating revenues of $661 million plunged 67.4% year over year due to the 68.9% decrease in passenger revenues, which accounted for bulk (91.7%) of the top line. Revenues from other sources declined 33.8% to $55 million. The top line, however, surpassed the Zacks Consensus Estimate of $617.8 million.
JetBlue Airways Corporation Price, Consensus and EPS Surprise
Revenue per available seat mile (RASM: a key measure of unit revenues) in the reported quarter dropped 38.3% to 7.80 cents. Passenger revenue per available seat mile (PRASM) fell 41% to 7.15 cents. Average fare at JetBlue during the quarter dipped 2.9% to $180.54. Yield per passenger mile dropped 7.8% year over year to 13.63 cents.
Capacity, measured in available seat miles, contracted 47.3% year over year. Traffic, measured in revenue passenger miles, plunged 66.2% due to softness in air-travel demand. Load factor (percentage of seats filled by passengers) slumped to 52.4% from 81.9% a year ago as traffic decline was more than the capacity reduction in the reported quarter.
In the fourth quarter, total operating expenses (on a reported basis) decreased 38.2% year over year, mainly owing to a 70.5% fall in aircraft fuel and related taxes. With major part of the fleet remaining grounded/under-utilized, fuel gallons consumed tanked 53.2% to 102 million.
Average fuel cost per gallon (including fuel taxes) declined 36.9% year over year to $1.31. JetBlue’s operating expenses per available seat mile (CASM) rose 17.2% to 13.16 cents due to capacity cuts. Excluding fuel, the metric escalated 48.2% to 12.31 cents.
JetBlue, currently carrying a Zacks Rank #3 (Hold), exited the fourth quarter with cash and cash equivalents of $1,918 million compared with $959 million at the end of 2019. Total debt at the end of the reported quarter was $4,863 million compared with $2,334 million at 2019 end.
Moreover, cash burn came in at $6.7 million per day, on average, during the fourth quarter. The average daily cash burn was toward the lower end of the $6-$8 million range predicted in early December.
Q1 Outlook
Revenues for the first quarter of 2021 are expected to decline in the 65-70% range from the first-quarter 2019 actuals. Capacity is anticipated to contract at least 40% in the March quarter from the figure reported in the first quarter of 2019. Operating expenses are expected to be roughly 25% down from the recorded first-quarter 2019 levels. Average fuel cost per gallon in the March quarter is estimated to be $1.61. EBITDA is expected in the range of a negative $525-$625 million.
How Other Airlines Fared
Let’s take a look at some of the other recently released earnings reports from companies within the Zacks Airline industry.
United Airlines (UAL - Free Report) incurred a loss (excluding 6 cents from non-recurring items) of $7 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $6.56. Also, operating revenues of $3,412 million lagged the Zacks Consensus Estimate of $3,420.4 million.
Delta Air Lines (DAL - Free Report) incurred a loss (excluding $1.34 from non-recurring items) of $2.53 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $2.43. However, total revenues of $3,973 million topped the Zacks Consensus Estimate of $3,754.5 million.
Southwest Airlines (LUV - Free Report) incurred a loss of $1.29 per share (excluding 25 cents from non-recurring items) in the fourth quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $1.69. However, in the year-ago period, the company delivered earnings of 98 cents per share.
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JetBlue Airways (JBLU) Posts Q4 Loss Amid Coronavirus Woes
JetBlue Airways (JBLU - Free Report) incurred a fourth-quarter 2020 loss (excluding 19 cents from non-recurring items) of $1.53 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $1.72. 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 56 cents per share owing to strong air-travel demand.
Moreover, operating revenues of $661 million plunged 67.4% year over year due to the 68.9% decrease in passenger revenues, which accounted for bulk (91.7%) of the top line. Revenues from other sources declined 33.8% to $55 million. The top line, however, surpassed the Zacks Consensus Estimate of $617.8 million.
JetBlue Airways Corporation Price, Consensus and EPS Surprise
JetBlue Airways Corporation price-consensus-eps-surprise-chart | JetBlue Airways Corporation Quote
Other Details
Revenue per available seat mile (RASM: a key measure of unit revenues) in the reported quarter dropped 38.3% to 7.80 cents. Passenger revenue per available seat mile (PRASM) fell 41% to 7.15 cents. Average fare at JetBlue during the quarter dipped 2.9% to $180.54. Yield per passenger mile dropped 7.8% year over year to 13.63 cents.
Capacity, measured in available seat miles, contracted 47.3% year over year. Traffic, measured in revenue passenger miles, plunged 66.2% due to softness in air-travel demand. Load factor (percentage of seats filled by passengers) slumped to 52.4% from 81.9% a year ago as traffic decline was more than the capacity reduction in the reported quarter.
In the fourth quarter, total operating expenses (on a reported basis) decreased 38.2% year over year, mainly owing to a 70.5% fall in aircraft fuel and related taxes. With major part of the fleet remaining grounded/under-utilized, fuel gallons consumed tanked 53.2% to 102 million.
Average fuel cost per gallon (including fuel taxes) declined 36.9% year over year to $1.31. JetBlue’s operating expenses per available seat mile (CASM) rose 17.2% to 13.16 cents due to capacity cuts. Excluding fuel, the metric escalated 48.2% to 12.31 cents.
JetBlue, currently carrying a Zacks Rank #3 (Hold), exited the fourth quarter with cash and cash equivalents of $1,918 million compared with $959 million at the end of 2019. Total debt at the end of the reported quarter was $4,863 million compared with $2,334 million at 2019 end.
The carrier exited the final quarter of 2020 with approximately $3.1 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.
Moreover, cash burn came in at $6.7 million per day, on average, during the fourth quarter. The average daily cash burn was toward the lower end of the $6-$8 million range predicted in early December.
Q1 Outlook
Revenues for the first quarter of 2021 are expected to decline in the 65-70% range from the first-quarter 2019 actuals. Capacity is anticipated to contract at least 40% in the March quarter from the figure reported in the first quarter of 2019. Operating expenses are expected to be roughly 25% down from the recorded first-quarter 2019 levels. Average fuel cost per gallon in the March quarter is estimated to be $1.61. EBITDA is expected in the range of a negative $525-$625 million.
How Other Airlines Fared
Let’s take a look at some of the other recently released earnings reports from companies within the Zacks Airline industry.
United Airlines (UAL - Free Report) incurred a loss (excluding 6 cents from non-recurring items) of $7 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $6.56. Also, operating revenues of $3,412 million lagged the Zacks Consensus Estimate of $3,420.4 million.
Delta Air Lines (DAL - Free Report) incurred a loss (excluding $1.34 from non-recurring items) of $2.53 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $2.43. However, total revenues of $3,973 million topped the Zacks Consensus Estimate of $3,754.5 million.
Southwest Airlines (LUV - Free Report) incurred a loss of $1.29 per share (excluding 25 cents from non-recurring items) in the fourth quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $1.69. However, in the year-ago period, the company delivered earnings of 98 cents per share.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>