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JetBlue's (JBLU) Q4 Loss Narrower Than Expected, Q1 View Weak
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JetBlue Airways (JBLU - Free Report) fourth-quarter 2023 loss (excluding 12 cents from non-recurring items) of 19 cents per share was narrower than the Zacks Consensus Estimate of a loss of 28 cents. In the year-ago quarter, JBLU reported earnings of 22 cents.
Operating revenues of $2.32 billion edged past the Zacks Consensus Estimate of $2.29 billion. However, the top line decreased 3.73% year over year.
Passenger revenues, accounting for the bulk of the top line (93.2%), declined to $2.17 billion from $2.27 billion a year ago. Passenger revenues were hurt due to air-traffic-control issues in the Northeast. The metric was just ahead of our projection of $2.13 billion. Other revenues rose 7.7% to $159 million, just short of our estimate of $159.9 million.
Other Q4 Details
All comparisons are presented on a year-over-year basis unless mentioned otherwise.
Revenue per available seat mile (RASM: a key measure of unit revenues) declined 6.8% to 13.67 cents. Passenger revenue per available seat mile fell 7.5% to 12.73 cents. Average fare at JetBlue decreased 12.3% to $201.73. Yield per passenger mile dipped 2%.
Consolidated traffic (measured in revenue passenger miles) declined 0.5%. Capacity (measured in available seat miles) increased 3.3%. Consolidated load factor (percentage of seats filled by passengers) contracted 310 basis points to 80.1% as traffic decreased while capacity improved. The actual value of the load factor was a tad less than our projection of 80.2%.
Total operating costs (on a reported basis) edged up 0.9% to $2.39 billion, mainly due to a 9% gain in expenses on salaries, wages and benefits. The average fuel price per gallon (including related taxes) was $3.08, up 4.8% sequentially, highlighting a rise in oil price. JBLU’s operating expenses per available seat mile (CASM) fell 2.4% year over year. Excluding fuel, CASM increased 7.6% to 9.82 cents.
JetBlue, currently carrying a Zacks Rank #3 (Hold), exited the quarter with cash and cash equivalents of $1.16 billion compared with $1.04 billion at the end of 2022. Total debt at the end of the December quarter was $4.72 billion compared with $3.65 billion at 2022-end. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In line with its cost-cutting efforts, JBLU reached agreements to defer $2.5 billion in planned aircraft spending to 2028 and later from original plans of incurring these expenses in the 2024-2027 time frame.
Bleak Outlook
While providing guidance for first-quarter 2024, management stated that all comparisons are made with respect to first-quarter 2023 figures.
Capacity is anticipated to decline in the 3-6% band. CASM, excluding fuel and special items, is predicted to climb 9-11%. Capital expenditures are expected to be roughly $250 million. Total revenues are forecast to tumble in the range of 5-9%. Average fuel cost per gallon is estimated to be between $2.87 and $3.02.
For full-year 2024, capacity is envisioned to be down in low single digits (percentage wise) from 2023 actuals. CASM, excluding fuel and special items, is predicted in the mid-to-high single-digit range (percentage-wise) from 2023 figures.
Total revenues for 2024 are anticipated to be flat from 2023 levels. Capital expenditures are expected to be roughly $1.6 billion in the current year. Management expects current-year earnings to approach breakeven. The Zacks Consensus Estimate is currently pegged at a loss of 54 cents.
Q4 Performances of Some Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.5% on a year-over-year basis due to high labor costs.
Revenues of $14.22billion surpassed the Zacks Consensus Estimate of $14.07 billion and increased 5.9% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines (UAL - Free Report) reported fourth-quarter 2023 earnings per share (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13.6 billion beat the Zacks Consensus Estimate of $13.5 billion. The top line increased 9.9% year over year due to upbeat air-travel demand. Cargo revenues fell 14.8% year over year to $402 million. Revenues from other sources jumped 10.6% year over year to $803 million.
J.B. Hunt Transport Services (JBHT - Free Report) fourth-quarter 2023 earnings per share of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
Total operating revenues of $3.3 billion surpassed the Zacks Consensus Estimate of $3.2 billion but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.
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JetBlue's (JBLU) Q4 Loss Narrower Than Expected, Q1 View Weak
JetBlue Airways (JBLU - Free Report) fourth-quarter 2023 loss (excluding 12 cents from non-recurring items) of 19 cents per share was narrower than the Zacks Consensus Estimate of a loss of 28 cents. In the year-ago quarter, JBLU reported earnings of 22 cents.
Operating revenues of $2.32 billion edged past the Zacks Consensus Estimate of $2.29 billion. However, the top line decreased 3.73% year over year.
Passenger revenues, accounting for the bulk of the top line (93.2%), declined to $2.17 billion from $2.27 billion a year ago. Passenger revenues were hurt due to air-traffic-control issues in the Northeast. The metric was just ahead of our projection of $2.13 billion. Other revenues rose 7.7% to $159 million, just short of our estimate of $159.9 million.
Other Q4 Details
All comparisons are presented on a year-over-year basis unless mentioned otherwise.
Revenue per available seat mile (RASM: a key measure of unit revenues) declined 6.8% to 13.67 cents. Passenger revenue per available seat mile fell 7.5% to 12.73 cents. Average fare at JetBlue decreased 12.3% to $201.73. Yield per passenger mile dipped 2%.
Consolidated traffic (measured in revenue passenger miles) declined 0.5%. Capacity (measured in available seat miles) increased 3.3%. Consolidated load factor (percentage of seats filled by passengers) contracted 310 basis points to 80.1% as traffic decreased while capacity improved. The actual value of the load factor was a tad less than our projection of 80.2%.
Total operating costs (on a reported basis) edged up 0.9% to $2.39 billion, mainly due to a 9% gain in expenses on salaries, wages and benefits. The average fuel price per gallon (including related taxes) was $3.08, up 4.8% sequentially, highlighting a rise in oil price. JBLU’s operating expenses per available seat mile (CASM) fell 2.4% year over year. Excluding fuel, CASM increased 7.6% to 9.82 cents.
JetBlue, currently carrying a Zacks Rank #3 (Hold), exited the quarter with cash and cash equivalents of $1.16 billion compared with $1.04 billion at the end of 2022. Total debt at the end of the December quarter was $4.72 billion compared with $3.65 billion at 2022-end. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In line with its cost-cutting efforts, JBLU reached agreements to defer $2.5 billion in planned aircraft spending to 2028 and later from original plans of incurring these expenses in the 2024-2027 time frame.
Bleak Outlook
While providing guidance for first-quarter 2024, management stated that all comparisons are made with respect to first-quarter 2023 figures.
Capacity is anticipated to decline in the 3-6% band. CASM, excluding fuel and special items, is predicted to climb 9-11%. Capital expenditures are expected to be roughly $250 million. Total revenues are forecast to tumble in the range of 5-9%. Average fuel cost per gallon is estimated to be between $2.87 and $3.02.
For full-year 2024, capacity is envisioned to be down in low single digits (percentage wise) from 2023 actuals. CASM, excluding fuel and special items, is predicted in the mid-to-high single-digit range (percentage-wise) from 2023 figures.
Total revenues for 2024 are anticipated to be flat from 2023 levels. Capital expenditures are expected to be roughly $1.6 billion in the current year. Management expects current-year earnings to approach breakeven. The Zacks Consensus Estimate is currently pegged at a loss of 54 cents.
Q4 Performances of Some Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.5% on a year-over-year basis due to high labor costs.
Revenues of $14.22 billion surpassed the Zacks Consensus Estimate of $14.07 billion and increased 5.9% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines (UAL - Free Report) reported fourth-quarter 2023 earnings per share (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13.6 billion beat the Zacks Consensus Estimate of $13.5 billion. The top line increased 9.9% year over year due to upbeat air-travel demand. Cargo revenues fell 14.8% year over year to $402 million. Revenues from other sources jumped 10.6% year over year to $803 million.
J.B. Hunt Transport Services (JBHT - Free Report) fourth-quarter 2023 earnings per share of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
Total operating revenues of $3.3 billion surpassed the Zacks Consensus Estimate of $3.2 billion but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.