JetBlue Clocks 5.5% Revenue Decline In Q3 Versus 2019 Level; Says Holidays Performing Meaningfully Better

JetBlue Airways Corp JBLU reported a third-quarter FY21 adjusted loss per share of $(0.12) compared to adjusted EPS of $0.59 in 3Q19, beating the consensus of $(0.18).
Capacity declined by 0.8% year over two, in line with its planning assumption of a 1% decline year over two.
Operating Revenue declined 5.5% compared to 3Q19 and improved 300% year-over-year to $1.97 billion.
Operating expenses per available seat mile decreased 2.1% compared to 3Q19, and Operating expenses per available seat mile, excluding fuel and special items, increased 12.7% year over two.
Operating expenses increased by 77% Y/Y to $1.78 billion.
The operating margin recovered to 9.4% from -104.9% in 3Q20. Adjusted EBITDA of $140 million, compared to $381 million in 3Q19.
Load factor improved to 79.9% from 42.6% a year ago.
The realized fuel price in the quarter was $2.08 per gallon, a 1.2% increase versus the 3Q19 realized fuel price of $2.06.
JetBlue's adjusted debt to capital was 53% as of September 30, 2021.
The company held ~$3.3 billion in cash and equivalents.
Outlook: JetBlue expects Q4 EBITDA of negative $(50) million - positive $50 million. It expects Q4 revenue to decline (8%) - (13%) year over two.
"We expect troughs to be challenging, exacerbated by a slower business travel recovery, but the holidays are performing meaningfully better, and we took tactical capacity actions to better align with the demand environment," said COO Joanna Geraghty.
It continues to expect CASM ex-Fuel to improve from a double-digit growth rate in the second half of 2021 to low-single-digit growth in 2022, versus 2019 levels.
Price Action: JBLU shares closed lower by 0.95% at $14.60 on Tuesday.

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