Q124 JBLU earnings

earnings summary

Earnings Results: • Exceeded Q1 financial commitments, driven by improving operational reliability, solid peak period demand, and continued execution on controllable costs • Revenue declined 5.1% year-over-year, at the better end of the outlook • CASM ex-fuel increased 7.1%, beating the better end of the revised March outlook • Delivered $40 million in revenue initiative benefits in Q1

Future Guidance: • Revised full-year guidance; no longer expect to approach breakeven adjusted operating margin for the full year due to elevated capacity in the Latin region • Expect Q2 capacity to be down 2% to 5% year-over-year • Expect Q2 CASM ex-fuel to increase between 5.5% and 7.5% year-over-year • Expect full-year CASM ex-fuel growth of up mid- to high single digits year-over-year • On track to deliver $300 million in cumulative revenue initiative benefits by Q4 2024

JetBlue Airways reported better-than-expected financial results for the first quarter of 2024, driven by improving operational reliability, solid peak period demand, and continued focus on controllable costs. However, the company revised its full-year guidance due to elevated capacity in the Latin region, which represents 35% of its total capacity. JetBlue no longer expects to approach breakeven adjusted operating margin for the full year.

The airline is taking swift actions to strengthen its competitive position, including rebalancing its network, implementing revenue initiatives, and focusing on cost control. JetBlue is confident that these measures, combined with its strong brand, low-cost base, and talented crew members, will help the company overcome the challenges posed by the current market conditions.

Despite the headwinds, JetBlue remains committed to its core geographies, particularly in the Latin region, viewing the current challenges as transitory. The company is also seeing positive trends in domestic markets, loyalty programs, and JetBlue Travel Products.

CEO Joanna Geraghty emphasized the company’s focus on returning to profitability: “Make no mistake, our #1 priority is getting this business back to consistent profitability. We were profitable in the month of March, and we’re focused on driving sustainable long-term profitability.”

President Marty St. George expressed confidence in JetBlue’s future: “I see so much opportunity ahead. JetBlue has an exceptional brand, incredibly high-value geographies and a strategy that I’m excited to execute on. Most importantly, we have the industry’s best crew members.”