Jetblue Airways (JBLU) Q1 2025 Earnings Call April 29, 2025 10:00 AM ET Company Participants Koosh Patel - Director of Investor RelationsJoanna Geraghty - CEOMarty George - PresidentUrsula Hurley - CFODuane Pfennigwerth - Senior MDSavanthi Syth - MD - Airlines & Advance Air MobilityMichael Linenberg - Managing DirectorCatherine O'Brien - Vice PresidentRavi Shanker - Managing Director Conference Call Participants Jamie Baker - AnalystThomas Fitzgerald - AnalystDaniel McKenzie - Equity Research AnalystAndrew ...

Core Viewpoint - JetBlue Airways reported a quarterly loss of $0.59 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.61, but worse than the loss of $0.43 per share from the previous year, indicating ongoing financial challenges for the airline [1][2]. Financial Performance - The company posted revenues of $2.14 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.42% and down from $2.21 billion a year ago [2]. - Over the last four quarters, JetBlue has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2]. Stock Performance - JetBlue shares have declined approximately 48.2% since the beginning of the year, contrasting with the S&P 500's decline of 6% [3]. - The current Zacks Rank for JetBlue is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.13 on revenues of $2.44 billion, and for the current fiscal year, it is -$1.19 on revenues of $9.44 billion [7]. - The estimate revisions trend for JetBlue is mixed, and future changes in estimates will be closely monitored following the recent earnings report [6][7]. Industry Context - The Transportation - Airline industry, to which JetBlue belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting a challenging environment for the sector [8].

Financial Performance - Total operating revenues for the three months ended March 31, 2025, were $2,140 million, a decrease of 2.2% compared to $2,209 million in the same period of 2024 [143]. - Total operating expenses for the three months ended March 31, 2025, were $2,314 million, down 21.0% from $2,928 million in 2024 [140]. - Operating loss for the three months ended March 31, 2025, was $174 million, significantly improved from a loss of $719 million in the same period of 2024 [143]. - Net loss for Q1 2025 was $208 million, a significant improvement from a net loss of $716 million in Q1 2024 [144]. - Loss per common share for Q1 2025 was $0.59, compared to $2.11 in Q1 2024, indicating a reduction in losses [144]. - Excluding special items and gains/losses on investments, the net loss for Q1 2025 was $209 million, compared to $145 million in Q1 2024 [144]. Operating Expenses - Operating expenses excluding fuel for the three months ended March 31, 2025, were $1,787 million, an increase of 3.7% from $1,724 million in 2024 [140]. - A hypothetical 10% increase in aircraft fuel costs would lead to an additional $210 million in fuel expenses over the next 12 months [146]. Liquidity and Cash Requirements - The company expects sufficient liquidity to meet cash requirements for at least the next 12 months [125]. - Total cash requirements for known contractual obligations amount to $21,496 million, with $1,904 million due in the remainder of 2025 [127]. - The company has $59 million of restricted cash pledged under standby letters of credit related to certain leases [129]. Debt and Interest Rates - The company has $6.8 billion of fixed-rate debt, while $1.7 billion is subject to floating interest rates [147]. - An increase of 100 basis points in interest rates would raise annual interest expenses by approximately $18 million [147]. - A decrease of 100 basis points in interest rates would reduce interest income from cash and investments by about $16 million [148]. Fleet and Deliveries - The average age of the operating fleet was 12 years as of March 31, 2025, consisting of 287 aircraft [130]. - Committed future aircraft deliveries total 103, including 55 Airbus A220 and 48 Airbus A321neo, with deliveries scheduled through 2029 [131]. Working Capital - Working capital decreased by $326 million to $51 million as of March 31, 2025, primarily due to higher current air-traffic liability from seasonal fluctuations [124].

Financial Performance - JetBlue reported a net loss of $208 million or $(0.59) per share for Q1 2025, with a non-GAAP adjusted net loss of $209 million or $(0.59) per share[9]. - Operating revenue for Q1 2025 was $2.1 billion, a decrease of 3.1% year-over-year, while operating expenses decreased by 21.0% to $2.3 billion[9]. - Total operating revenues decreased by 3.1% to $2,140 million in Q1 2025 from $2,209 million in Q1 2024[15]. - Passenger revenue declined by 4.2% to $1,969 million, while other revenue increased by 10.9% to $171 million[15]. - Total operating expenses fell by 21.0% to $2,314 million, primarily due to an 18.3% reduction in aircraft fuel costs[15]. - Operating loss improved by 75.7% to $(174) million compared to $(719) million in the prior year[15]. - Net loss decreased by 70.9% to $(208) million from $(716) million year-over-year[15]. - The operating margin for Q1 2025 was (8.2)%, an improvement from (32.6)% in Q1 2024[36]. - Loss per share for Q1 2025 was $(0.59), a significant improvement from $(2.11) in Q1 2024[39]. - The adjusted pre-tax margin for Q1 2025 was (12.7)%, compared to (34.7)% in Q1 2024[36]. - The company reported a loss before income taxes of $271 million for Q1 2025, improved from a loss of $767 million in Q1 2024[36]. - The adjusted operating margin for Q1 2025 was (8.2)%, compared to (7.1)% in Q1 2024[36]. - The loss before income taxes excluding special items and gains/losses on investments was $272 million for Q1 2025, compared to $183 million in Q1 2024[36]. Operational Metrics - Year-over-year unit revenue increased by 1.3%, and premium, international, and loyalty segments showed resilience, with loyalty revenue up 9% year-over-year[9]. - Operating expense per available seat mile (CASM) decreased by 17.4% year-over-year, while CASM ex-fuel increased by 8.3% year-over-year[9]. - JetBlue's system capacity decreased by 4.3% year-over-year, reflecting proactive capacity management in response to demand fluctuations[9]. - Revenue passengers decreased by 3.3% to 9,264 thousand, while revenue passenger miles (RPMs) fell by 3.1% to 12,601 million[17]. - Operating expense per available seat mile (ASM) improved by 17.4% to 14.83 cents, while operating expense per ASM excluding fuel increased by 8.3% to 11.45 cents[31]. Liquidity and Assets - The company ended Q1 2025 with $3.8 billion in liquidity, representing 41% of trailing twelve-month revenue[9]. - JetBlue has over $5 billion in unencumbered assets, primarily consisting of aircraft, engines, and slots, gates, and routes[5]. - Cash and cash equivalents increased to $2,297 million from $1,921 million at the end of 2024[19]. - Total debt slightly decreased to $8,474 million from $8,539 million[19]. Strategic Initiatives - The company launched enhancements to its EvenMore product, adding amenities such as dedicated overhead bin space and free alcohol[6]. - JetBlue's JetForward strategy has led to a four-point year-over-year improvement in on-time performance and a double-digit increase in Net Promoter Score[6]. - The company anticipates a continued softened demand for off-peak travel into Q2 2025, with estimated RASM year-over-year decline of 7.5% to 3.5%[10].

Group 1: Company Developments - JetBlue Airways (JBLU) is resuming two nonstop routes from Fort Lauderdale-Hollywood International Airport (FLL) to Philadelphia International Airport (PHL) and Jose Joaquin de Olmedo International Airport (GYE) in Guayaquil, Ecuador, starting this July [1][2][3] - One-way fares for the new routes start at $69 and $119, with tickets available for purchase on jetblue.com [2] - The resumption of these routes is a response to customer demand and aims to strengthen JBLU's focus on South Florida and connections to the East Coast and Latin America [3][4] Group 2: Market Positioning - JetBlue is positioning itself as Fort Lauderdale's premium leisure carrier, offering over 70 daily flights to more than 30 destinations, with a 6% year-over-year increase in departures [4][5] - The airline aims to provide more value, choice, and convenience for customers traveling to vacation destinations and connecting with family and friends [5] Group 3: Financial Insights - JBLU currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [6] - Investors may also consider Air Transport Services Group (ATSG) and Expeditors International of Washington (EXPD) within the Zacks Transportation sector [7]

What a roller coaster of a ride it has been since last Wednesday. After an incredibly rough stretch over the last four days of trading, this afternoon, President Donald Trump announced a 90-day pause on higher tariff rates for most countries, implementing a base 10% reciprocal level. However, Trump left tariffs in place on China and boosted them to 124%.The announcement led to a face-melting rally, with the Dow Jones Industrial Average blasting nearly 3,000 points higher. The S&P 500 rose nearly 10%, while ...

Core Insights - The article discusses the implications of stocks trading below their book value per share (BVPS) and highlights three companies that are currently struggling in this context [1][2][3]. Viatris - Viatris was formed in 2020 from a spinoff of Pfizer's Upjohn business and Mylan, but has lost 52% of its value since then, with significant losses occurring since mid-November 2024 [4][5]. - The company reported a net loss of $634 million last year, but generated free cash flow of $1.9 billion, which covered its dividend payments of approximately $575 million [5][6]. - Viatris' stock trades at about half of its book value, raising concerns about it being a value trap, as losses have outweighed dividend income for investors [6]. JetBlue Airways - JetBlue is trading at around half of its book value and has seen a nearly 51% decline in stock price this year, primarily due to disappointing earnings and guidance [7][8]. - The airline reported a 3% drop in operating revenue and an operating loss of $684 million in 2024, with losses recorded for the past four years [7][8]. - Economic challenges, including tariffs and trade wars, are expected to hinder JetBlue's recovery, making it a risky investment at this time [9]. Plug Power - Plug Power, which develops hydrogen fuel cell systems, has seen its stock price decline by over 43% this year and is trading at a BVPS of 0.6, indicating a steep discount [10][11]. - The company has incurred net losses of nearly $3.5 billion over the past two years, which is almost three times its market cap of $1.2 billion [11][12]. - Due to its significant financial losses, Plug Power is considered a risky investment, and a considerable improvement in its financials is necessary before it can be deemed a viable option [12].

Core Viewpoint - JetBlue Airways' stock price fell nearly 6% following significant price target cuts from analysts, reflecting broader market declines in the S&P 500 [1][2]. Analyst Price Target Cuts - Analyst Helane Becker from TD Cowen reduced JetBlue's fair-value assessment from $6 to $4 per share, representing a 33% decrease, while maintaining a hold recommendation [2]. - Bank of America's Andrew Didora also cut his price target for JetBlue from $5.25 to $4.25, rating the stock as underperform [3]. Market Conditions and Consumer Demand - Didora's bearish outlook is attributed to weakening consumer demand, which has led to similar cuts in estimates and price targets for several U.S. airline stocks [4]. - The post-pandemic enthusiasm for travel appears to be waning, with U.S. consumers becoming more cautious about airline stocks due to economic concerns, including the impact of recently imposed tariffs [5].

Core Viewpoint - JetBlue Airways Corp has experienced significant stock declines, indicated by a technical pattern known as a Death Cross, suggesting potential for continued bearish momentum [1][6]. Stock Performance - JetBlue stock has dropped nearly 30% over the past year and 35% year-to-date, with a 26% decline in the past month alone, making it one of the hardest-hit airline stocks [2]. - The current stock price is $4.78, which is below its five-day, 20-day, and 50-day exponential moving averages [2]. Technical Indicators - The eight-day simple moving average (SMA) is at $5.20, the 20-day SMA at $5.47, and the 50-day SMA at $6.24, all indicating bearish signals [4]. - The 200-day SMA is at $6.28, suggesting that JetBlue stock has a considerable distance to recover [4]. - A Relative Strength Index (RSI) of 29.94 indicates that the stock is in oversold territory, which may suggest that selling pressure is overextended [4]. - The Moving Average Convergence Divergence (MACD) at negative 0.4 reinforces the bearish sentiment [4]. Recent Developments - JetBlue stock reached a 52-week low of $4.44 on April 1, raising questions about whether this is the lowest point or if further declines are expected [5]. - Despite the stock's weakness, there are signs of emerging buying pressure, which could indicate a potential bullish reversal [5]. Future Outlook - The Death Cross pattern solidifies the bearish trend for JetBlue stock, but the oversold RSI may present an opportunity for contrarian investors [6]. - The upcoming weeks will be critical in determining whether the current turbulence is temporary or indicative of a prolonged downturn [6].

Company Overview - JetBlue Airways (JBLU) is launching a new daily summer-seasonal service between Manchester-Boston Regional Airport and New York's John F. Kennedy International Airport, operational from June 12 to October 25, 2025 [1] - This route will be the only nonstop air service between Manchester, NH, and New York City, utilizing Airbus A320 aircraft [2] Pricing and Promotions - For promotional purposes, one-way fares for the new route are being offered at a special price of $49, available online only [2] - Customers can also earn TrueBlue points, select seats, and access JetBlue's customer service channels [2] Recent Developments - The announcement follows JetBlue's recent inaugural flights from Manchester to Orlando, Fort Myers, and Fort Lauderdale, indicating a strategic expansion in service offerings [3] - The company has established daily year-round service to Orlando and seasonal service to Fort Myers, enhancing its connectivity from Manchester [3] Strategic Positioning - JetBlue's vice president highlighted that the new route aims to facilitate travel for customers in New Hampshire and greater New England, enhancing their competitive position in the airline industry amid rising global travel demand [4] Stock Performance - JBLU currently holds a Zacks Rank 3 (Hold) and has seen a 30.2% increase in share price over the past six months, outperforming the 23% growth of the Zacks Airline industry [5]