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JetBlue Airways (JBLU) Posts Narrower-Than-Expected Q1 Loss
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JetBlue Airways (JBLU - Free Report) incurred a first-quarter 2021 loss (excluding 1 cent from non-recurring items) of 80 cents per share, comparing favorably with the Zacks Consensus Estimate of a loss of 85 cents. This was the ninth successive quarterly loss posted by this currently Zacks Rank #3 (Hold) low-cost carrier.
JetBlue Airways Corporation Price, Consensus and EPS Surprise
Quarterly loss per share was also narrower than the year-ago loss of $1.48. Operating revenues of $1,736 million skyrocketed more than 100% year over year and fell short of the Zacks Consensus Estimate of $1,741.6 million. This massive year-over-year jump reflects improving air-travel demand. Quarterly revenues decreased 5.3% sequentially, mainly due to the Omicron crisis in the early part of the quarter. Moreover, quarterly revenues declined 7.2% from the first-quarter 2019 actuals.
Passenger revenues, accounting for the bulk of the top line (92.3%), increased to $1,603 million in first-quarter 2022 from a mere $670 million a year ago when the impact of coronavirus on air-travel demand was much severe. Other revenues surged in excess of 100% to $133 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 40% to 11.29 cents. Passenger revenue per available seat mile (PRASM) surged 41.5% to 10.42 cents owing to better air-travel demand. Average fare at JetBlue during the quarter increased 30.7% to $195.99. Yield per passenger mile shot up 27.3% year over year to 14.67 cents.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) skyrocketed 88.1% in the reported quarter. To cater to this increased demand, capacity (measured in available seat miles) expanded 69.2% to 15,383 million. Consolidated load factor (percentage of seats filled by passengers) increased 7.1 percentage points to 71% in the first quarter of 2022 as traffic growth outpaced capacity expansion.
In the first quarter, total operating expenses (on a reported basis) escalated 104.8% to $2,103 million, mainly due to a 195% rise in aircraft fuel expenses and related taxes. Average fuel price per gallon (including related taxes) climbed to $2.90 from $1.72 a year ago as oil prices move north.
JetBlue’s operating expenses per available seat mile (CASM) increased 21% to 13.67 cents. Excluding fuel, the metric declined 19.4% to 9.87 cents.
JetBlue exited the first quarter of 2022 with cash and cash equivalents of $1,834 million compared with $2,018 million at the end of 2021. Total debt at the end of the reported quarter was $3,926 million compared with $4,006 million at 2021 end. During the quarter, JBLU paid off regularly scheduled debt and finance lease obligations worth $83 million.
Outlook
While providing guidance for second-quarter 2022, management stated that all comparisons are made with respect to the second quarter of 2019. Capacity is anticipated to be flat or increase up to 3% from second-quarter 2019 actuals. CASM excluding fuel and special items is predicted to rise 15-17%.
Total revenues are forecast to increase in the 11-16% range. The revenue projection includes up to a four-point impact from the operational disruption in April. Average fuel cost per gallon in the June quarter is estimated to be $3.79. Capital expenditures in the June quarter are anticipated to be roughly $300 million.
For 2022, capacity is expected to be flat or increase up to 5% from the 2019 levels. CASM, excluding fuel and special items, is predicted to rise 10-15% from the 2019 actuals. Capital expenditures for 2022 are anticipated to be roughly $1 billion. Current-year interest expenses are forecast in the $140-$150 million band.
J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.
Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year.
CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.
Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year.
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss suffered by UAL as coronavirus woes persist to suppress air-travel demand.
Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million.
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JetBlue Airways (JBLU) Posts Narrower-Than-Expected Q1 Loss
JetBlue Airways (JBLU - Free Report) incurred a first-quarter 2021 loss (excluding 1 cent from non-recurring items) of 80 cents per share, comparing favorably with the Zacks Consensus Estimate of a loss of 85 cents. This was the ninth successive quarterly loss posted by this currently Zacks Rank #3 (Hold) low-cost carrier.
JetBlue Airways Corporation Price, Consensus and EPS Surprise
JetBlue Airways Corporation price-consensus-eps-surprise-chart | JetBlue Airways Corporation Quote
Quarterly loss per share was also narrower than the year-ago loss of $1.48. Operating revenues of $1,736 million skyrocketed more than 100% year over year and fell short of the Zacks Consensus Estimate of $1,741.6 million. This massive year-over-year jump reflects improving air-travel demand. Quarterly revenues decreased 5.3% sequentially, mainly due to the Omicron crisis in the early part of the quarter. Moreover, quarterly revenues declined 7.2% from the first-quarter 2019 actuals.
Passenger revenues, accounting for the bulk of the top line (92.3%), increased to $1,603 million in first-quarter 2022 from a mere $670 million a year ago when the impact of coronavirus on air-travel demand was much severe. Other revenues surged in excess of 100% to $133 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 40% to 11.29 cents. Passenger revenue per available seat mile (PRASM) surged 41.5% to 10.42 cents owing to better air-travel demand. Average fare at JetBlue during the quarter increased 30.7% to $195.99. Yield per passenger mile shot up 27.3% year over year to 14.67 cents.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) skyrocketed 88.1% in the reported quarter. To cater to this increased demand, capacity (measured in available seat miles) expanded 69.2% to 15,383 million. Consolidated load factor (percentage of seats filled by passengers) increased 7.1 percentage points to 71% in the first quarter of 2022 as traffic growth outpaced capacity expansion.
In the first quarter, total operating expenses (on a reported basis) escalated 104.8% to $2,103 million, mainly due to a 195% rise in aircraft fuel expenses and related taxes. Average fuel price per gallon (including related taxes) climbed to $2.90 from $1.72 a year ago as oil prices move north.
JetBlue’s operating expenses per available seat mile (CASM) increased 21% to 13.67 cents. Excluding fuel, the metric declined 19.4% to 9.87 cents.
JetBlue exited the first quarter of 2022 with cash and cash equivalents of $1,834 million compared with $2,018 million at the end of 2021. Total debt at the end of the reported quarter was $3,926 million compared with $4,006 million at 2021 end. During the quarter, JBLU paid off regularly scheduled debt and finance lease obligations worth $83 million.
Outlook
While providing guidance for second-quarter 2022, management stated that all comparisons are made with respect to the second quarter of 2019. Capacity is anticipated to be flat or increase up to 3% from second-quarter 2019 actuals. CASM excluding fuel and special items is predicted to rise 15-17%.
Total revenues are forecast to increase in the 11-16% range. The revenue projection includes up to a four-point impact from the operational disruption in April. Average fuel cost per gallon in the June quarter is estimated to be $3.79. Capital expenditures in the June quarter are anticipated to be roughly $300 million.
For 2022, capacity is expected to be flat or increase up to 5% from the 2019 levels. CASM, excluding fuel and special items, is predicted to rise 10-15% from the 2019 actuals. Capital expenditures for 2022 are anticipated to be roughly $1 billion. Current-year interest expenses are forecast in the $140-$150 million band.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshots
Within the broader Transportation sector, J.B. Hunt Transport Services (JBHT - Free Report) ,CSX Corporation (CSX - Free Report) and United Airlines (UAL - Free Report) recently reported first-quarter 2022 results.
J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.
Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year.
CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.
Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year.
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss suffered by UAL as coronavirus woes persist to suppress air-travel demand.
Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million.