- JetBlue Airways Corporation JBLU reported a second-quarter adjusted EPS loss of $(0.65), compared to adjusted EPS of $0.60 in 2Q19, beating the consensus of $(0.74).
- Total operating revenue increased to $1.49 billion from $215 million a year ago and was down 29% compared to 2Q19, beating the consensus of $1.44 billion.
- Operating expenses increased 116.3% year-over-year to $1.35 billion and declined 27% compared to 2Q19.
- Operating margin recovered to 9.8% from -190.8% in 2Q20. Adjusted EBITDA loss was $(86) million, compared to $379 million in 2Q19.
- Load factor improved to 79.2% from 33.8% a year ago.
- The company reduced net debt by $1.2 billion to $0.9 billion. As of June 30, 2021, JetBlue's adjusted debt to capital was 55%.
- JetBlue ended the quarter with ~$3.7 billion in unrestricted cash, cash equivalents, and short-term investments.
- The realized fuel price in the quarter was $1.91 per gallon, a 12% decline vs. 2Q19. JetBlue has not entered into forward fuel derivative contracts to hedge its fuel consumption for the third quarter of 2021.
- Q3 Outlook: The company expects a revenue decline of (4%) and (9%) year over two. It expects significant sequential improvement of approximately 20 points in Q3.
- "We expect unit revenue to continue to improve on top of increasing capacity, with load factors in the mid-to-high 80s this summer," COO Joanna Geraghty said.
- The assumption for Q3 capacity is between flat to down (3%) year over two. EBITDA will range between $75 and $175 million.
- Price Action: JBLU shares are trading down by 6.78% at $14.98 on the last check Tuesday.
- Photo by Adam Moreira via Wikimedia
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