JetBlue's Q1 Results Beat Street View, Airline Sees Strong Demand Trends Into Q2

JetBlue Airways Corporation JBLU reported first-quarter FY23 operating revenue growth of 34.1% year-on-year to $2.33 billion Tuesday, beating the consensus estimate of $2.32 billion.
An adjusted EPS loss of 34 cents per share beat the consensus estimate of a 38-cent loss.
Operating expenses increased 22.2% year-over-year to $2.57 billion.
The operating loss for the quarter was $242 million compared to $367 million last year. The operating margin was negative 10.4%, an improvement of 1,070 bps.
The load factor improved from 71% a year ago to 79.8%. Revenue passenger miles increased by 22.4% Y/Y, and ASM increased by 9% Y/Y. CASM ex-fuel increased by 1.2% Y/Y.
The average aircraft fuel price per gallon, including related taxes, was $3.50 vs. $2.90 last year.
The company's adjusted debt was $3.77 billion as of March 31, 2022. The adjusted debt-to-capitalization ratio was 53%.
JetBlue ended the quarter with $1.7 billion in cash and equivalents.
"Demand trends remain robust into the second quarter, with strong demand for leisure and visiting-friends-and-relatives (VFR) travel particularly during peak periods. We're also pleased with the continued improvement in revenue and financial performance at our largest focus city, New York," said Joanna Geraghty, JetBlue's president and chief operating officer.
Q2 Outlook: JBLU expects second-quarter revenue growth of 4.5%-8.5% and adjusted EPS of 35-45 cents versus a 30-cent estimate.
It sees ASMs increasing by 4.5%-7.5% and CASM ex-Fuel increasing by 1.5%-3.5%.
FY23 Outlook: JBLU said it expects FY23 revenue growth of high single digits to low double digits. It sees adjusted EPS of 70 cents to $1 versus a 54-cent estimate.
JBLU expects ASMs to increase by 5.5%-8.5% and CASM ex-fuel by 1.5%-4.5%.
JBLU Price Action: JBLU shares are trading near-flat at $6.82 midday Tuesday.
Photo via Shutterstock.

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