NEW YORK, N.Y., Aug. 14, 2024 (GLOBE NEWSWIRE) -- JetBlue Airways Corporation (NASDAQ: JBLU) (“JetBlue”) today announced that JetBlue and JetBlue Loyalty, LP (the “Loyalty LP” and, together with JetBlue, the “Issuers”), a newly formed Cayman Islands exempted limited partnership and an indirect wholly-owned subsidiary of JetBlue, priced their (1) $2,000 million aggregate principal amount of 9.875% senior secured notes due 2031 (the “Notes”) and (2) $765 million senior secured Term Loan B due 2029 (the “Term ...

NEW YORK, N.Y., Aug. 12, 2024 (GLOBE NEWSWIRE) --  JetBlue Airways Corporation (NASDAQ: JBLU) (“JetBlue”) today announced the pricing of $400 million aggregate principal amount of its 2.50% convertible senior notes due 2029 (the “notes”). JetBlue granted the initial purchasers of the notes an option to purchase up to an additional $60 million aggregate principal amount of the notes. JetBlue expects to close the offering on or about August 16, 2024, subject to the satisfaction of customary conditions. In cer ...

Core Insights - JetBlue shares fell over 21% after announcing plans to raise over $3 billion in debt and receiving credit downgrades from major rating agencies [1][3] - S&P Global and Moody's downgraded JetBlue's credit ratings, while Fitch Ratings maintained its rating but downgraded its senior secured debt ratings [2][3] - Moody's indicated that it may take JetBlue "a number of years" to improve its operating profit and cash flow sufficiently for an upgrade [2] Debt Financing Details - JetBlue plans to raise $1.5 billion through a private offering of senior secured notes, $1.25 billion via a term loan secured by its loyalty program TrueBlue, and $400 million through a convertible notes offering [1] Credit Rating Changes - Moody's downgraded JetBlue's rating to B3 from B2, citing rising competition and increased consumer demand for premium offerings as challenges [2] - S&P Global cut JetBlue's issuer credit rating to B- from B, predicting continued weakness due to excess industry capacity and higher labor costs [2] - Fitch Ratings maintained a B rating for JetBlue, noting a healthy liquidity balance but downgraded its senior secured debt ratings to BB-/RR2 from BB/RR1 [3] Stock Performance - JetBlue shares dropped to $4.75 in afternoon trading, marking a loss of over 14% since the beginning of the year [3]

JetBlue (NASDAQ:JBLU) stock is falling hard on Monday after the airline company announced a $400 million senior secured notes offering.JetBlue is selling $400 million worth of senior secured notes due in 2029. Additionally, initial investors in this offering will have a 13-day option to acquire another $60 million worth of senior secured notes.JetBlue says that it will use some of the funds from this offer to repurchase its 0.50% senior convertible notes due 2026. The rest will go toward general corporate p ...

Core Viewpoint - JetBlue Airways Corporation plans to offer $400 million in convertible senior notes due 2029, with an option for initial purchasers to buy an additional $60 million within 13 days of issuance, aiming to repurchase existing convertible notes due 2026 and cover related expenses [1] Group 1: Offering Details - The offering consists of $400 million aggregate principal amount of convertible senior notes due 2029 [1] - Initial purchasers may buy up to an additional $60 million within a 13-day period from the original issuance date [1] - Net proceeds will be used to repurchase existing 0.50% senior convertible notes due 2026 and to pay related fees and expenses [1] Group 2: Regulatory and Compliance Information - The notes will be offered only to "qualified institutional buyers" under Rule 144A, exempt from registration under the Securities Act [3] - The notes and any shares of common stock upon conversion will not be registered under the Securities Act or state laws, and cannot be offered or sold in the U.S. without registration or an exemption [3] Group 3: Company Overview - JetBlue is recognized as New York's Hometown Airline® and operates in key markets including Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando, and San Juan [7] - The airline serves over 100 destinations across the U.S., Latin America, the Caribbean, Canada, and Europe [7]

NEW YORK, N.Y., Aug. 12, 2024 (GLOBE NEWSWIRE) -- JetBlue Airways Corporation (NASDAQ: JBLU) (“JetBlue”) today announced that JetBlue and JetBlue Loyalty, LP (the “Loyalty LP” and, together with JetBlue, the “Issuers”), a newly formed Cayman Islands exempted limited partnership and an indirect wholly-owned subsidiary of JetBlue, intend to (1) commence a private offering of a proposed $1,500 million aggregate principal amount of senior secured notes due 2031 (the “Loyalty Notes”) and (2) launch a proposed se ...

Core Insights - JetBlue Airways (JBLU) reported second-quarter 2024 earnings of 8 cents per share, surpassing the Zacks Consensus Estimate of a loss of 13 cents, but down from 45 cents in the same quarter last year [1] - Operating revenues reached $2.43 billion, exceeding the Zacks Consensus Estimate of $2.39 billion, although this represents a 7% year-over-year decline [1] - Passenger revenues, which constitute 93.4% of total revenues, fell to $2.26 billion from $2.46 billion a year ago, impacted by air traffic control issues in the Northeast [1] Revenue and Traffic Performance - Revenue per available seat mile (RASM) decreased by 4.4% to 14.38 cents, while passenger revenue per available seat mile dropped 5.4% to 13.41 cents [2] - The average fare at JetBlue decreased by 0.5% to $218.27, and the yield per passenger mile also dipped by 4% [2] - Consolidated traffic, measured in revenue passenger miles, declined by 4.1%, and capacity, measured in available seat miles, fell by 2.7% [2] - The consolidated load factor decreased by 1.3 percentage points to 84%, indicating that the decline in traffic was greater than the reduction in capacity [2] Cost and Financial Position - Total operating costs remained flat at $2.4 billion, with salaries, wages, and benefits increasing by 1.6% year over year [3] - The average fuel price per gallon rose by 5.1% year over year to $2.87, contributing to a 2.6% increase in operating expenses per available seat mile (CASM) [3] - JetBlue ended the quarter with cash and cash equivalents of $1.31 billion, up from $1.16 billion at the end of 2023, while total debt increased to $5.37 billion from $4.72 billion [3] Future Outlook - For Q3 2024, JetBlue anticipates a capacity decline in the range of 3-6% and expects CASM, excluding fuel and special items, to rise by 6-8% [4] - Total revenues are projected to decrease by 1.5-5.5%, with average fuel costs estimated between $2.82 and $2.97 per gallon [4] - For the full year 2024, capacity is expected to decline by 2.5-5%, and CASM, excluding fuel and special items, is predicted to increase by 6.5-8.5% [4]

Core Insights - JetBlue Airways reported a profit in Q2 2024, surprising analysts despite a revenue decline of 6.9% year-over-year [3][4] - The airline's non-GAAP EPS of $0.08 exceeded expectations by $0.18, indicating a positive shift in performance [3][4] - JetBlue's stock surged by 12% following the earnings report, reflecting investor optimism despite previous losses [4][7] Financial Performance - Q2 revenue was $2.43 billion, which was $30 million above expectations but down 6.9% from the previous year [3][4] - The airline's capacity decreased by nearly 3% in Q2, with forecasts indicating a further dip of 3% to 6% in Q3 [4][6] - JetBlue's market cap stands at $2.3 billion, trading at 2.5 times its incremental EBIT boost goals [6] Strategic Initiatives - JetBlue is implementing the JetForward plan, aiming to increase EBIT by $800 to $900 million from 2025 to 2027 [5][6] - The airline plans to exit up to 15 BlueCity locations, eliminating 50 routes to focus on more profitable operations [4][6] - JetBlue will defer approximately $3 billion in A321neo aircraft capital expenditures to the 2030s to manage capacity and costs [6] Market Context - The airline industry is experiencing a shift towards premium services, with legacy airlines segmenting their offerings more effectively [5][6] - JetBlue's transformation efforts are crucial following the failed merger with Spirit Airlines, as the company seeks to adapt to changing market demands [5][7] - The overall market is improving, as indicated by Q2 results and capacity cuts among legacy airlines, which may lead to better yields in the coming months [4][7]

JetBlue is focusing on its East Coast leisure routes as it works to return to profitability.The airline released quarterly earnings Tuesday (July 30) showing a $25 million profit, and said it plans to emphasize flights in and out of New York, Puerto Rico and New England, where it is adding new routes from Manchester, N.H.“Our network sits in some of the most valuable geographies in the world,” said JetBlue CEO Joanna Geraghty.“We have a leading position and three of the five largest markets on the East Coas ...

Financial Data and Key Metrics Changes - JetBlue generated an adjusted pre-tax income of $34 million for Q2 2024, marking a positive performance despite ongoing challenges [10][35] - Revenue decreased by 6.9% year-over-year, aligning with the midpoint of revised guidance, while capacity was down 2.7% [30][32] - CASM (Cost per Available Seat Mile) excluding fuel grew by 3.7% year-over-year, outperforming the low end of revised guidance [40][42] Business Line Data and Key Metrics Changes - The premium product offerings, particularly "Even More Space," saw unit revenue growth in double digits year-over-year, contributing positively to overall performance [11][30] - The company realized approximately $140 million in top-line benefits in the first half of 2024 from initiatives aimed at driving revenue [11][26] Market Data and Key Metrics Changes - JetBlue's capacity contraction is expected to provide a constructive backdrop for unit revenue improvement, with forecasts indicating a year-over-year revenue decline of 5.5% to 1.5% in Q3 2024 [32] - The company is adjusting capacity to better match supply and demand, particularly in leisure markets, which are showing stronger recovery [31][28] Company Strategy and Development Direction - JetBlue's new strategy, "JetForward," aims to enhance operational reliability, focus on high-value geographies, and improve customer offerings to drive profitability [12][14] - The company plans to achieve an incremental EBIT contribution of $800 million to $900 million by 2027, in addition to $300 million from revenue initiatives already announced for 2024 [15][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from Pratt & Whitney engine-related aircraft groundings, which are impacting growth and profitability [13][37] - The company is focused on returning to profitability as soon as possible, with a goal of achieving breakeven operating margin for the full year of 2025 [54] Other Important Information - JetBlue has deferred 44 A321neo aircraft deliveries, reducing capital expenditures by approximately $3 billion, which will help improve free cash flow [24][39] - The company ended Q2 2024 with $1.6 billion in liquidity, excluding a $600 million undrawn credit facility, and has secured $1.3 billion in committed financing [47][48] Q&A Session Summary Question: Can JetBlue achieve profitability in each quarter of 2025? - Management is focused on achieving profitability as soon as possible and has initiated planning for 2025 with a goal of breakeven operating margin for the full year [54] Question: What is the year-to-date loss from Pratt & Whitney issues? - Management did not disclose specific figures but emphasized that the situation is frustrating and is considered a transitory issue that should resolve over the next few years [56][57] Question: How is Mint RASM performing amidst network changes? - Mint RASM is up low single digits with a 30% ASM growth, indicating strong demand from both high-end leisure and corporate customers [60][61] Question: What is the expected CapEx for next year? - CapEx is expected to be a few hundred million lower year-over-year, with 24 aircraft deliveries planned for next year [62] Question: How does the order deferral impact international ambitions? - Management clarified that while the deferrals will impact growth, they are not retreating from international markets, particularly transatlantic routes [66] Question: What is the trend in business demand? - Contracted corporate customer business revenue is still growing at high single digits, indicating continued demand despite network changes [76]