JetBlue Reports Second Quarter 2023 Net Profit of $138 Million or $0.41 per Share
JetBlue has reported a second quarter net income of $138 million or $0.41 per share on a year-over-year increase in revenue of 6.7 percent to $2.6 billion. At June 30, 2023, the carrier had $2.4 billion in total liquidity.
On Tuesday (August 1, 2023), JetBlue Airways reported their second quarter financial results for the period ending June 30, 2023. The carrier reported a second quarter net profit of $138 million or $0.41 per share on a year-over-year increase in revenue of 6.7 percent to $2.6 billion. JetBlue’s second quarter revenue per available seat mile (RASM) increased 0.9 percent to 15.04 cents, while cost per available seat mile (CASM) declined 12.2 percent versus the same pariod last year to 13.68 cents. Costs excluding fuel (CASM-ex) increased year-over-year by 3.2 percent to 10.00 cents. At June 30, 2023, JetBlue had $1.8 million in unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities, as well as a $600 million undrawn revolving credit facility.
In Tuesday’s announcement, JetBlue’s Chief Executive Officer, Robin Hayes, said,
“Thanks to the hard work of our fantastic Crewmembers, we generated our highest quarterly profit since 2019, demonstrating the progress we have made since the pandemic. These results were underpinned by record quarterly revenues and strong operational performance, reflecting the benefits from our significant investments and robust preparations for the peak summer travel period.”
Also commenting on the company’s second quarter results, JetBlue’s President and Chief Operating Officer, Joanna Geraghty, said,
“I’m proud of our team for their continued commitment to our customers as we faced a more challenging than expected operating environment driven by severe air traffic control restrictions and exacerbated by weather. However, our investments in the operation are making a difference and enabling us to recover more quickly as we manage through unforeseeable disruptions.
“Overall leisure demand trends are healthy and we continue to see robust demand during peak periods, led by strength in Latin America, visiting-friends-and-relatives and transatlantic travel. Looking ahead, we are updating our full-year earnings outlook to reflect near-term headwinds related to the termination of the NEA, a challenging operating environment in the northeast and a greater than expected shift of pent-up COVID demand to long-haul international markets which is pressuring demand for domestic travel during the peak summer travel period. While we remain on track to deliver a profitable year and record revenue performance, we are taking action, including redeploying capacity to mitigate these current challenges and improve margins.”
JetBlue’s Chief Financial Officer, Ursula Hurley, added,
“While challenges persist in the near term, we are pulling every lever at our disposal to continue to drive cost efficiencies, including better utilization, technology upgrades, fleet modernization and our structural cost program. I remain confident in our ability to manage the near-term headwinds and focus on the factors we can control as we rebuild long-term margins and restore our historical earnings power.”
JetBlue's Second Quarter 2023 Financial Results - Courtesy JetBlue
During the second quarter, JetBlue started new service between New York-JFK and Paris-Charles de Gaulle, and also has plans to launch Boston-Paris service in 2024. Additionally, the carrier continued their Caribbean expansion with new routes to and from Puerto Rico and the announcement of new service to Belize, St. Kitts and Nevis. JetBlue’s Northeast Alliance with American Airlines was also terminated during the quarter following an unfavorable court ruling. The company also announced an agreement with Frontier Airlines to divest of all of Spirit Airlines’ holdings at New York La Guardia (LGA) following the closing of the JetBlue-Spirit merger transaction.
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 over 100 destinations across the U.S., Caribbean, Latin America, the United Kingdom (London Heathrow and Gatwick), Paris, and Amsterdam (from late summer 2023). JetBlue Airways Corporation trades on the NASDAQ under the ticker symbol JBLU.