JetBlue(US:JBLU)2025-02-14 12:03Operational Overview - JetBlue served over 100 destinations across the U.S., Caribbean, Latin America, Canada, and Europe as of December 31, 2024[26]. - The capacity distribution for 2024 shows Caribbean & Latin America at 35.9%, Transcontinental at 27.0%, and Transatlantic at 5.3%[36]. - JetBlue's fleet is highly dependent on fuel availability, which is subject to price volatility, impacting operational costs[20]. - The airline's operational risks include potential disruptions in service at focus cities and increased airport expenses due to infrastructure issues[20]. - JetBlue's business model focuses on a mix of leisure and business travelers to optimize revenue and reduce seasonality impacts[35]. - JetBlue's point-to-point route structure focuses on the Northeast corridor, with 130 nonstop routes served in the New York metropolitan area[48]. - The company has 11 aircraft grounded due to engine availability issues related to Pratt & Whitney engines, with inspections expected to take approximately 360 days[54]. Financial Performance - Total operating revenues for 2024 were $9,279 million, a decrease of 3.5% from $9,615 million in 2023[360]. - Passenger revenues decreased to $8,617 million in 2024 from $9,008 million in 2023, reflecting a decline of 4.3%[360]. - Operating expenses increased to $9,963 million in 2024, up 1.2% from $9,845 million in 2023[360]. - The operating loss for 2024 was $684 million, compared to a loss of $230 million in 2023[360]. - Net loss for 2024 was $795 million, significantly higher than the net loss of $310 million in 2023[362]. - The company reported a comprehensive loss of $789 million for 2024, compared to a comprehensive loss of $314 million in 2023[362]. - Long-term debt and finance lease obligations increased significantly to $8.147 billion in 2024, compared to $4.409 billion in 2023, marking an increase of 84.5%[357]. - Total current liabilities rose to $3.881 billion in 2024, up from $3.628 billion in 2023, which is an increase of 6.9%[357]. - The company's retained earnings decreased to $1.319 billion in 2024 from $2.114 billion in 2023, a decline of approximately 37.6%[357]. - JetBlue's total stockholders' equity decreased to $2.641 billion in 2024 from $3.337 billion in 2023, representing a decline of about 20.9%[357]. Liquidity and Cash Management - JetBlue ended 2024 with a cash balance of $3.9 billion, maintaining a healthy liquidity position[56]. - The company's cash and cash equivalents rose to $1.921 billion in 2024, up from $1.166 billion in 2023, indicating a growth of 64.5%[355]. - The balance of receivables increased slightly to $348 million in 2024 from $336 million in 2023, reflecting a growth of 3.6%[355]. - The total property and equipment net value increased to $10.656 billion in 2024 from $9.675 billion in 2023, indicating a growth of 10.1%[355]. Sustainability Initiatives - JetBlue aims to reduce well-to-wake scope 1 and 3 greenhouse gas emissions related to jet fuel by 50% per revenue tonne kilometer by 2035 from a 2019 base year[74]. - JetBlue plans to convert 10% of its jet fuel usage to blended Sustainable Aviation Fuel (SAF) by 2030, with eight active SAF partners as of December 31, 2024[78]. - The company is committed to converting 40% of its Ground Service Equipment (GSE) to electric power by 2025 and 50% by 2030[79]. - The company has invested in 11 sustainability-related companies through its subsidiary JBV as of December 31, 2024[80]. - JetBlue's sustainability strategy integrates science-based environmental risks and opportunities into broader business goals and decision-making processes[74]. Workforce and Employee Management - The average number of active full-time equivalent crewmembers decreased by 3.9% compared to 2023, totaling 19,403 full-time and 3,390 part-time crewmembers as of December 31, 2024[69]. - The company employs an average of 4,497 pilots and 5,785 inflight crewmembers as part of its workforce[69]. Loyalty and Customer Engagement - The TrueBlue loyalty program includes four Mosaic levels, rewarding members based on travel and credit card spend[44]. - The air traffic liability associated with the loyalty program was $1.1 billion at December 31, 2024, reflecting the company's deferred revenue from customer loyalty points[343]. - The balance of TrueBlue points available for redemption increased to $1,125 million as of December 31, 2024, compared to $1,072 million in 2023[410]. - The loyalty revenue from air transportation for 2024 was $634 million, an increase of 4.8% from $605 million in 2023[406]. Capital Expenditures and Investments - Capital expenditures for 2024 totaled $1,478 million, up from $1,128 million in 2023[365]. - JetBlue Ventures had an aggregate carrying value of $84 million in equity investments as of December 31, 2024[58]. - The company issued 12 million shares under the Crewmember Stock Purchase Plan in 2024, raising $60 million[371]. Debt and Financing Activities - The company issued $2.0 billion in senior secured notes in August 2024, with an interest rate of 9.875% per annum, maturing in September 2031[423]. - The company entered into a $765 million senior secured term loan facility due in 2029, with interest at a variable rate equal to Term SOFR plus an applicable margin[426]. - The company completed a private offering of $750 million of 0.50% convertible notes due 2026, with net proceeds of approximately $734 million[435]. - The company recognized a gain on debt extinguishment of $22 million in 2024 from retiring $425 million of existing convertible senior notes[440]. Regulatory and Compliance - The company maintained effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria[346]. - The company has adopted ASU 2023-07 effective December 31, 2024, which requires enhanced disclosures for reportable segments, but it did not materially impact financial results[405].