JetBlue announced their first quarter financial results on Thursday with a net loss of $268 million or ($0.97) per diluted share. Revenues for the quarter declined 15.1 percent year-over-year to $1.588 billion.
On Thursday, JetBlue Airways Corporation (NASDAQ: JBLU) reported a first quarter net loss of $268 million or ($0.97) per diluted share on a 15.1 percent revenue decline to $1.588 billion. The first quarter results include a 52 percent decline in March revenue versus 2019 as a result of the global COVID-19 pandemic. The company is taking aggressive measures to mitigate cash burn and was able to cut $150 million from their cost base in the first quarter through capacity cuts, adjusted work schedules and a reduction in discretionary spending. JetBlue has increased their cash, cash equivalents, and short-term investments from $1.3 billion at the close of 2019 to $1.8 billion at the end of the first quarter. The company’s liquidity position as of April 30, 2020 has been further increased through additional financing including $936 million from the U.S. CARES Act Payroll Support Program (PSP). In Thursday’s announcement, JetBlue’s Chief Executive Officer, Robin Hayes said,
“I could not be prouder of our JetBlue family – not just over the past two decades – but for their service to each other, our customers, and our communities as they provide an essential service during the coronavirus pandemic. We entered this crisis with the second strongest balance sheet among U.S. airlines. In the past two months, we have moved quickly to both protect and strengthen our liquidity position. Since the beginning of March, we have made decisive changes to our growth plan to minimize cash burn, including deep capacity cuts to our schedules. We have now reduced our CAPEX plan by $1.3 billion between now and the end of 2022, and by the end of May, we anticipate we will have lowered our operating expenses by approximately 50% year over year. As we move towards recovery, we have three priorities. This first is the immediate need to protect the safety of our Crewmembers and Customers. The second is to minimize cash burn. The third priority is to set JetBlue up for future success by restoring Customer confidence, by returning to cash generation, and rebuilding our margins and balance sheet. We believe that, not only will we get through this crisis, but we will ultimately emerge as a stronger JetBlue. JetBlue has been a force for good in our industry, and we have been resilient through crises for over 20 years.”
During the first quarter, JetBlue repaid $102 million in regular debt and finance lease obligations. The carrier has also taken several steps to bolster liquidity including the securing of a $1.0 billion 364-day secured term loan and a draw-down of an existing $550 million revolving credit facility. Additionally, JetBlue has revised their order book with Airbus to achieve a $1.1 billion reduction in aircraft capital expenditures through 2022 and deferred plans to take delivery of four leased aircraft. The company also paused their A320 cabin restyling program (already 50% completed) and suspended non-essential projects and share repurchases. As a result of these cash preservation actions, JetBlue expects daily cash burn to be reduced from $18 million in the second half of March to under $10 million in May (not including $5 million in daily payroll support program funds). Under the loan provision of the U.S. CARES Act, JetBlue has access to an additional $1.14 billion in funds if necessary.
In trading Thursday morning, shares in JetBlue Airways Corporation (NASDAQ: JBLU) were 3.43% higher at $8.29/share (10:16 AM EDT).
Source: JetBlue Airways