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JetBlue (JBLU) Q4 Earnings Top as Air-Travel Demand Surges
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JetBlue Airways’ (JBLU - Free Report) fourth-quarter 2022 earnings (excluding 15 cents from non-recurring items) of 22 cents per share beat the Zacks Consensus Estimate of 19 cents. Results were aided by strong air-travel demand. In the year-ago quarter, JBLU incurred a loss of 36 cents per share.
Operating revenues of $2,415 million climbed 31.68% year over year and beat the Zacks Consensus Estimate of $2,407.5 million. The double-digit year-over-year jump reflects improving air-travel demand.
Passenger revenues, accounting for the bulk of the top line (93.8%), increased to $2,267 million in fourth-quarter 2022 from $1,695 million a year ago when air-travel demand was not so robust. Other revenues rose 6.7% to $148 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 21.6% to 14.66 cents. Passenger revenue per available seat mile rose 23.5% to 13.76 cents owing to better air-travel demand. Average fare at JetBlue during the December quarter increased 9.9% to $216.2. Yield per passenger mile shot up 13.5% to 16.55 cents.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) improved 17.8% in the reported quarter. To cater to this increased demand, capacity (measured in available seat miles) increased 8.3% to 16,470 million. Consolidated load factor (percentage of seats filled by passengers) increased 6.8 points to 83.2% in the fourth quarter of 2022 as traffic growth outpaced capacity expansion.
In the fourth quarter, total operating expenses (on a reported basis) escalated 21.5% to $2,372 million, mainly due to 72.8% rise in aircraft fuel expenses and related taxes. Average fuel price per gallon (including related taxes) climbed to $3.70 from $2.37 a year ago, as oil prices move north.
JBLU’s operating expenses per available seat mile (CASM) increased 12.1% to 14.40 cents. Excluding fuel, CASM decreased 5.5% to 9.13 cents.
JetBlue, currently carrying a Zacks Rank #3 (Hold), exited 2022 with cash and cash equivalents of $1,042 million compared with $2,018 million at the end of 2021. Total debt at the end of 2022 was $3,647 million compared with $4,006 million at 2021 end. During the quarter, JBLU paid off $114 million of debt and finance lease obligations.
While providing guidance for first-quarter 2023, management stated that all comparisons are made with respect to first-quarter 2022 figures.
Capacity is anticipated to increase in the 5.5-8.5% range. CASM, excluding fuel and special items, is predicted to rise 2-4%.
Total revenues are forecast to increase in the 28-32% range. Average fuel cost per gallon in the March quarter is estimated to be between $3.20 and $3.35.
Interest expense is forecast in the $40-$50 million range. Management expects first-quarter 2023 loss in the range of 35-45 cents per share. The Zacks Consensus Estimate for first-quarter 2023 loss is currently pegged at 7 cents per share.
For full-year 2023, capacity is expected to increase in the band of 5.5-8.5% from the 2022 actuals. CASM, excluding fuel and special items, is predicted to rise 1.5-4.5% from the 2022 actuals. Current-year interest expense is forecast in the $200-$210 million band.
Total revenues for 2023 are forecast to increase year over year in the high single-digit to low double-digit range. Management expects 2023 earnings per share to be between 70 cents and $1.00. The Zacks Consensus Estimate for full-year 2023 earnings per share is currently pegged at 64 cents.
A Sneak Peek Into Some Other Notable Airline Results
Let’s look at the fourth-quarter 2022 results of Delta Air Lines (DAL - Free Report) and United Airlines (UAL - Free Report)
Delta Air Lines’ earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
Delta reported revenues of $13,435 million, which surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.
United Airlines reported earnings of $2.46 per share, which beat the Zacks Consensus Estimate of $2.07 per share. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million. UAL’s revenues increased 51.37% year over year due to upbeat air-travel demand.
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JetBlue (JBLU) Q4 Earnings Top as Air-Travel Demand Surges
JetBlue Airways’ (JBLU - Free Report) fourth-quarter 2022 earnings (excluding 15 cents from non-recurring items) of 22 cents per share beat the Zacks Consensus Estimate of 19 cents. Results were aided by strong air-travel demand. In the year-ago quarter, JBLU incurred a loss of 36 cents per share.
Operating revenues of $2,415 million climbed 31.68% year over year and beat the Zacks Consensus Estimate of $2,407.5 million. The double-digit year-over-year jump reflects improving air-travel demand.
Passenger revenues, accounting for the bulk of the top line (93.8%), increased to $2,267 million in fourth-quarter 2022 from $1,695 million a year ago when air-travel demand was not so robust. Other revenues rose 6.7% to $148 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 21.6% to 14.66 cents. Passenger revenue per available seat mile rose 23.5% to 13.76 cents owing to better air-travel demand. Average fare at JetBlue during the December quarter increased 9.9% to $216.2. Yield per passenger mile shot up 13.5% to 16.55 cents.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) improved 17.8% in the reported quarter. To cater to this increased demand, capacity (measured in available seat miles) increased 8.3% to 16,470 million. Consolidated load factor (percentage of seats filled by passengers) increased 6.8 points to 83.2% in the fourth quarter of 2022 as traffic growth outpaced capacity expansion.
In the fourth quarter, total operating expenses (on a reported basis) escalated 21.5% to $2,372 million, mainly due to 72.8% rise in aircraft fuel expenses and related taxes. Average fuel price per gallon (including related taxes) climbed to $3.70 from $2.37 a year ago, as oil prices move north.
JBLU’s operating expenses per available seat mile (CASM) increased 12.1% to 14.40 cents. Excluding fuel, CASM decreased 5.5% to 9.13 cents.
JetBlue, currently carrying a Zacks Rank #3 (Hold), exited 2022 with cash and cash equivalents of $1,042 million compared with $2,018 million at the end of 2021. Total debt at the end of 2022 was $3,647 million compared with $4,006 million at 2021 end. During the quarter, JBLU paid off $114 million of debt and finance lease obligations.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
While providing guidance for first-quarter 2023, management stated that all comparisons are made with respect to first-quarter 2022 figures.
Capacity is anticipated to increase in the 5.5-8.5% range. CASM, excluding fuel and special items, is predicted to rise 2-4%.
Total revenues are forecast to increase in the 28-32% range. Average fuel cost per gallon in the March quarter is estimated to be between $3.20 and $3.35.
Interest expense is forecast in the $40-$50 million range. Management expects first-quarter 2023 loss in the range of 35-45 cents per share. The Zacks Consensus Estimate for first-quarter 2023 loss is currently pegged at 7 cents per share.
For full-year 2023, capacity is expected to increase in the band of 5.5-8.5% from the 2022 actuals. CASM, excluding fuel and special items, is predicted to rise 1.5-4.5% from the 2022 actuals. Current-year interest expense is forecast in the $200-$210 million band.
Total revenues for 2023 are forecast to increase year over year in the high single-digit to low double-digit range. Management expects 2023 earnings per share to be between 70 cents and $1.00. The Zacks Consensus Estimate for full-year 2023 earnings per share is currently pegged at 64 cents.
A Sneak Peek Into Some Other Notable Airline Results
Let’s look at the fourth-quarter 2022 results of Delta Air Lines (DAL - Free Report) and United Airlines (UAL - Free Report)
Delta Air Lines’ earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
Delta reported revenues of $13,435 million, which surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.
United Airlines reported earnings of $2.46 per share, which beat the Zacks Consensus Estimate of $2.07 per share. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million. UAL’s revenues increased 51.37% year over year due to upbeat air-travel demand.