JetBlue(JBLU) - 2024 Q2 - Quarterly Results

Financial Performance - JetBlue reported a net income of $25 million or $0.07 earnings per share for Q2 2024, with adjusted net income of $26 million or $0.08 earnings per share[5]. - Net income dropped by 81.9% to $25 million for the three months ended June 30, 2024, compared to $138 million for the same period in 2023[18]. - Basic earnings per share for Q2 2024 was $0.07, compared to $0.41 in Q2 2023, reflecting a significant decline[36]. - Six-month earnings per share for 2024 showed a loss of $(2.02), compared to a loss of $(0.16) in the same period of 2023[36]. - The company experienced a significant decline in earnings per share over the six-month period, indicating potential challenges ahead[36]. - Overall, the financial results indicate a need for strategic reassessment to improve future performance[36]. Revenue and Expenses - Operating revenue for Q2 2024 was $2.4 billion, a decrease of 6.9% year-over-year, while operating expenses remained at $2.4 billion, down 0.1% year-over-year[5]. - Total operating revenues decreased by 6.9% to $2.428 billion for the three months ended June 30, 2024, compared to $2.610 billion for the same period in 2023[18]. - Passenger revenues fell by 7.9% to $2.265 billion for the three months ended June 30, 2024, compared to $2.460 billion for the same period in 2023[18]. - Operating income decreased by 75.9% to $57 million for the three months ended June 30, 2024, compared to $235 million for the same period in 2023[18]. - Total operating expenses for the three months ended June 30, 2024, were $2,371 million, a slight decrease of 0.1% compared to $2,375 million in the same period of 2023[27]. - Operating expenses excluding fuel for the same period were $1,729 million, reflecting a 1.0% increase from $1,714 million in 2023[27]. - For the six months ended June 30, 2024, total operating expenses increased by 7.2% to $5,300 million from $4,944 million in 2023[28]. - Operating expenses excluding fuel for the six months ended June 30, 2024, were $3,454 million, up 2.5% from $3,369 million in 2023[28]. Operational Metrics - JetBlue's completion factor improved to 98.8% in Q2 2024, up from 97.8% in Q2 2023, indicating enhanced operational performance[6]. - Revenue passenger miles (RPMs) decreased by 4.1% to 14,192 million for the three months ended June 30, 2024, compared to 14,798 million for the same period in 2023[21]. - Load factor decreased to 84.0% for the three months ended June 30, 2024, down from 85.3% for the same period in 2023[21]. - The average number of operating aircraft during the period was 285, a slight increase of 1.2% compared to 282 in the same period last year[21]. Cost Management - The company has executed structural cost program savings of approximately $145 million to date, contributing to its cost management efforts[6]. - The average fuel price in Q2 2024 was $2.87 per gallon, impacting overall operating costs[5]. - Average fuel cost per gallon increased by 5.1% to $2.87 for the three months ended June 30, 2024, compared to $2.73 for the same period in 2023[21]. - JetBlue anticipates maintaining its CASM-ex Fuel guidance for the full year in the range of 6.5% to 8.5% despite facing unit cost headwinds[10]. Strategic Initiatives - The company aims to achieve $800 million to $900 million of incremental EBIT from 2025 to 2027 through its JetForward strategy[4]. - JetBlue plans to defer approximately $3.0 billion in capital expenditures through 2029 to restore balance sheet health and improve cash flow[3]. - JetBlue is focusing on enhancing its leisure network, particularly in New York, New England, and Florida, with new routes announced to meet customer needs[2]. Special Items and Adjustments - Special items for the three months ended June 30, 2024, included voluntary opt-out costs, while for the six months, they included Spirit-related costs and Embraer E190 fleet transition costs[29]. - The company reported a pre-tax loss of $736 million for the six months ended June 30, 2024, compared to a pre-tax income of $216 million in 2023[33]. - The company experienced a 97.3% decrease in special items for the three months ended June 30, 2024, with only $1 million reported compared to $24 million in 2023[27]. - Special items added back to earnings for Q2 2024 amounted to $0.07, while for the six months it was $1.64[36]. - Income tax benefit related to special items for Q2 2024 was $0.02, consistent with the previous year[36].