JetBlue Reports First Quarter 2022 Net Loss of $255 Million or $0.79 Per Diluted Share
JetBlue Airways has today reported a first quarter net loss of $255 million or ($0.79) per diluted share on a 7.2 percent year-over-three decline in revenue of to $1.74 billion. At March 31, 2022, the carrier had approximately $2.9 billion in available liquidity.
On Tuesday (April 26, 2022), JetBlue Airways reported their first quarter financial results for the period ending March 31, 2022. The carrier reported a first quarter net loss of $255 million or ($0.79) per diluted share on a year-over-three decline in revenue of 7.2 percent to $1.74 billion. JetBlue’s Q1 revenue per available seat mile (RASM) increased 40 percent compared to Q1 2021 to 11.29 cents, while costs per available seat mile (CASM) increased year-over-year by 21 percent to 13.67 cents. Excluding fuel (CASM-ex), JetBlue’s total first quarter costs per available seat mile declined 19.4 percent versus Q1 2021 to 9.87 cents.
In Tuesday’s announcment, JetBlue’s Chief Executive Officer, Robin Hayes, said,
“Our first quarter results were characterized by a very strong demand acceleration, with revenue coming in more than six points ahead of our initial view in January. We delivered positive year-over-three revenue growth in the month of March as we exited the quarter with tremendous revenue momentum driven by very strong underlying travel demand across all of our core segments.”
“To help restore our operational reliability, we are reducing our capacity growth further as we plan more conservatively for the summer and make investments to de-risk the operation. These actions will create more resiliency in the operation, and set us up for a better May, and an even better June and strong summer peak. As we strive to provide the high quality of service that our Customers have come to expect from us, we’re taking proactive measures to invest in and improve our operational performance.
“Despite the current operating and fuel environment, we are seeing underlying momentum on our path to transforming JetBlue’s structural profitability. We are making great progress on many of our long-term initiatives in 2022, and these will be meaningful drivers of our earnings growth in the coming years.”
At March 31, 2022, JetBlue has approximately $2.9 billion in unrestricted cash, cash equivalents, short term investments and long-term marketable securities, plus an additional $550 million undrawn revolving credit facility. During the first quarter, the company paid down around $83 million in regularly scheduled debt and finance lease obligations.
Also commenting on the company’s first quarter results, JetBlue’s Chief Financial Officer, Ursula Hurley, said,
“We are extremely pleased with the demand and revenue momentum, which accelerated throughout the quarter and resulted in first quarter revenue that was roughly six points ahead of our original January forecast; we also executed within the range of our original cost guidance despite abnormally elevated winter weather events. Looking ahead, we are reducing our full-year capacity growth as we work to restore operational reliability and catch up on a backlog of training events, and also as we remain mindful of elevated fuel prices.
“For the second quarter, we are forecasting CASM ex-Fuel to increase 15% to 17% year over three, reflecting some inefficient, close-in capacity reductions in Q2, frontline premium and incentive pay to support the operation, ramp-up costs to maintain our hiring pace for the summer, and our recently signed deal with Air Line Pilots Association.
“Our revenue performance for the second quarter is expected to be a record result. However, significantly higher fuel prices and investments in the operation are delaying our return to sustained pre-tax profitability. That said, we believe we are on a path to building back our margins and creating value for our owners through strong revenue growth, disciplined cost control, and a methodical approach to capacity decisions.”
During the first quarter 2022, JetBlue added three new ‘BlueCities’ with service to Puerto Vallarta, Kansas City and Milwaukee. Later in the second quarter the airline will also launch new service to Asheville, North Carolina and Vancouver, Canada.
JetBlue is ‘New York’s Hometown Airline®’ and a leading carrier in Boston (BOS), Fort Lauderdale (FLL), Los Angeles (LAX), Orlando (MCO) and San Juan (SJU). The airline carries guests to destinations across the U.S., Caribbean, Latin America and London (Heathrow and Gatwick). JetBlue Airways Corporation trades on the NASDAQ under the ticker symbol JBLU.
In trading Tuesday morning (April 26, 2022), shares in JetBlue Airways Corporation (NASDAQ: JBLU) were down 6.7 percent at $12.19/share (9:46 AM EDT).