Exceeded third quarter expectations and
on-track to hit full-year targets
Progressing on roll-out and execution of
JetForward strategy
JetBlue Airways Corporation (NASDAQ: JBLU) today reported its
financial results for the third quarter of 2024.
"We met or exceeded all of our financial targets for the third
quarter and progressed on the implementation of our JetForward
strategy, sustaining the momentum we established in the second
quarter," said Joanna Geraghty, JetBlue's chief executive officer.
"Thanks to our crewmembers' efforts and our improved operational
performance in the third quarter, we saw a double digit increase in
customer satisfaction year-over-year. I am proud to lead this
incredible team, particularly as they continue to deliver the
JetBlue experience in the face of operational challenges like
Hurricanes Helene and Milton."
"We are pleased by our positive year-over-year unit revenue
performance in the third quarter. Our self-help capacity actions
have helped to better match supply with demand during off-peak
flying. Demand remained healthy in peak periods and close-in, and
was further supported by improving competitive capacity,
particularly in the Latin region, and the ramp of our revenue
initiatives," said Marty St. George, JetBlue's president. "During
the quarter, we announced new products and perks, such as lounges
and a premium co-branded credit card, and progressed on the
implementation of our reliability and network initiatives. Today,
we are also announcing the upcoming enhancement of our Even More
Space offering."
JetBlue to Launch EvenMore® to Meet Growing Premium Travel
Demand
In support of its "products and perks customers value" priority
move under JetForward, JetBlue today announced plans to evolve its
Even More Space extra legroom seat into a compelling new offering
with enhanced merchandising and greater visibility. The new
approach is designed to boost customer consideration for JetBlue
and strengthen the airline’s competitive position in the premium
leisure segment.
Starting from mid-November, we plan to give Even More Space
greater visibility in the booking process by offering it to
customers directly on the flight search results page on
jetblue.com. In addition, customers may continue to purchase Even
More Space seats in the seat selection map. As we move into 2025,
JetBlue will rebrand the offering EvenMore® to include new benefits
and amenities with the existing extra legroom seat, creating an
appealing offering for customers considering buying up for more
space and perks. JetBlue plans to announce the new amenities early
next year prior to the launch.
"We’re thrilled to enhance our popular extra legroom seats,
giving customers even more reasons to choose JetBlue," said Marty
St. George. "A key part of the EvenMore® transformation is making
it easier for customers to find and book these enhanced options
right from the start."
Progressing on Roll-Out and Implementation of JetForward
Strategy
- Reliable & Caring Service
- Realized benefits from initiatives to drive operational
reliability, with on-time performance improving by 12 points and
customer satisfaction scores improving by double digits
year-over-year in 3Q.
- Best East Coast Leisure Network
- Year-to-date, optimized over 20% of JetBlue's 2023 network,
representing 15 station closures and over 50 route exits.
- Redeployed aircraft to our strengths in leisure-focused routes
originating from Northeast airports, such as Providence, Rhode
Island's T.F. Green International Airport and Hartford,
Connecticut's Bradley International Airport, where JetBlue is
well-positioned to build scale locally.
- Products & Perks Customers
Value
- Announced enhancements to the airport experience with lounges
coming to John F. Kennedy International Airport's Terminal 5, in
late 2025, and Boston Logan International Airport coming soon
thereafter.
- Expanded co-brand portfolio with the announcement of a premium
co-branded credit card.
- Launched changes to Blue Basic fare, allowing customers to
bring a carry-on bag onboard, making JetBlue's basic economy
offering one of the industry’s best values for price-conscious
customers.
- A Secure Financial Future
- Raised ~$3.2 billion of financing to retire existing debt,
prefund capital expenditures in 2024 and 2025, and support the
runway of JetForward.
Third Quarter 2024 Financial Results
- Net loss for the third quarter of 2024 under U.S. Generally
Accepted Accounting Principles ("GAAP") of $60 million or $0.17
loss per share. Excluding special items, adjusted net loss for the
third quarter of 2024 of $54 million(1) or $0.16(1) loss per
share.
- Third quarter 2024 system capacity decreased by 3.6%
year-over-year.
- Operating revenue of $2.4 billion for the third quarter of
2024, an increase of 0.5% year-over-year.
- Operating expense of $2.4 billion for the third quarter of
2024, a decrease of 4.2% year-over-year.
- Operating expense per available seat mile ("CASM") for the
third quarter of 2024 decreased 0.7% year-over-year.
- Operating expense, excluding special items for the third
quarter of 2024, decreased 4.1%(1) year-over-year.
- Operating expense per available seat mile, excluding fuel,
other non-airline operating expenses, and special items ("CASM
ex-Fuel")(1) for the third quarter of 2024 increased 4.8%(1)
year-over-year.
- Operating margin of (1.6)% for the third quarter of 2024, an
increase of five points year-over-year.
- Average fuel price in the third quarter of 2024 of $2.67 per
gallon.
Third Quarter 2024 Key Highlights
- Improved adjusted operating margin by ~five points
year-over-year to (0.4)%.
- Delivered improved operational performance with a completion
factor of ~98%, up from ~96% in 3Q23.
- Third quarter year-over-year unit revenue increased by 4.3%,
underpinned by healthy demand in peak periods, improved close-in
bookings, competitive capacity moderation in the Latin region and
self-help capacity measures.
- Progressed on our $300 million 2024 revenue initiative target,
delivering ~$275 million of incremental top-line benefit
year-to-date, ~$135 million more than 2Q24.
- Executed on our cost initiatives, as evidenced by structural
cost program savings of $169 million to-date and fleet
modernization cost avoidance of $95 million to-date.
- Ended the quarter with ~$4.1 billion in liquidity, excluding
our undrawn $600 million revolving credit facility.
- Signed an agreement alongside World Fuel Services and Valero
Energy Corporation to bring first-ever ongoing supply of blended
sustainable aviation fuel to New York, with initial delivery
expected in 2024.
Outlook
"Our number one goal remains returning to operating
profitability, and growing our unit revenue is imperative to reach
operating profitability. As underlying trends from the third
quarter have broadly continued into the fourth quarter so far, we
expect unit revenue growth to remain positive and sequentially
consistent when adjusting for the CrowdStrike benefit in the third
quarter and the negative impacts of Hurricane Milton and the
election in the fourth quarter. As we look to 2025, I am encouraged
by the backdrop for our revenue performance to continue improving,
particularly as additional JetForward initiatives begin yielding
benefits," said Marty St. George.
Fourth Quarter and Full Year 2024
Outlook
Estimated 4Q 2024
Estimated FY 2024
Available Seat Miles ("ASMs")
Year-Over-Year
(7.0%) - (4.0%)
(4.5%) - (2.5%)
Revenue Year-Over-Year
(7.0%) - (3.0%)
(5.0%) - (4.0%)
CASM Ex-Fuel (1) Year-Over-Year
13.0% - 15.0%
7.0% - 8.0%
Fuel Price per Gallon (2), (3)
$2.50 - $2.65
$2.75 - $2.80
Interest Expense
$155 - $165 million
$370 - $380 million
Capital Expenditures
~$450 million
~$1.6 billion
"In the third quarter we improved operating margin by five
points versus our July expectations, driven primarily by improved
revenue performance, better operational performance and lower fuel
expense. We remain on track to deliver on our full-year CASM
ex-Fuel target as we remain laser focused on controlling costs and
sustaining our cost advantage," said Ursula Hurley, JetBlue's chief
financial officer. "To help support our runway to execute on our
JetForward strategy, we've also taken steps to bolster our
liquidity position through strategic financing efforts. As I look
to next year, I remain confident we have the right foundation to
begin delivering results on our $800 - $900 million EBIT (1)
target."
Earnings Call Details
JetBlue will hold a conference call to discuss its quarterly
earnings today, October 29, 2024 at 10:00 a.m. Eastern Time. A live
broadcast of the conference call will also be available via the
internet at http://investor.jetblue.com. The webcast replay
and presentation materials will be archived on the company’s
website for at least 30 days.
For further details, see the third quarter 2024 Earnings
Presentation available via the internet at http://investor.jetblue.com.
About JetBlue
JetBlue is New York's Hometown Airline®, and a leading carrier
in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando and San
Juan. JetBlue, known for its low fares and great service, carries
customers to more than 100 destinations throughout the United
States, Latin America, the Caribbean, Canada and Europe. For more
information and the best fares, visit jetblue.com.
Notes
(1)
Non-GAAP financial measure; Note A
provides a reconciliation of each non-GAAP financial measure used
in this release to the most directly comparable GAAP financial
measure and explains the reasons management believes that
presentation of these non-GAAP financial measures provides useful
information to investors regarding JetBlue's financial condition
and results of operations. In addition, refer to Note A for further
details on non-GAAP forward-looking information.
(2)
Includes fuel taxes, hedges and other fuel
fees.
(3)
JetBlue utilizes the forward Brent crude
curve and the forward Brent crude to jet crack spread to calculate
the unhedged portion of its current quarter. Fuel price is based on
forward curve as of October 11, 2024.
Forward-Looking Information
This Earnings Release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended. We intend such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act of 1933,
as amended (the "Securities Act"), and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act").
All statements other than statements of historical facts contained
in this Release are forward-looking statements. In some cases, you
can identify forward-looking statements by terms such as "expects,"
"plans" "intends," "anticipates," "indicates," "remains,"
"believes," "estimates," "forecast," "guidance," "outlook," "may,"
"will," "should," "seeks," "goals," "targets" or the negative of
these terms or other similar expressions. Additionally,
forward-looking statements include statements that do not relate
solely to historical facts, such as statements which identify
uncertainties or trends, discuss the possible future effects of
current known trends or uncertainties, or which indicate that the
future effects of known trends or uncertainties cannot be
predicted, guaranteed, or assured. Forward-looking statements
contained in this Earnings Release include, without limitation,
statements regarding our outlook and future results of operations
and financial position, including our expected return to
profitability, expectations with respect to our headwinds, our
product offerings, and our business strategy and plans and
objectives for future operations, including our JetForward
initiatives. Forward-looking statements involve risks,
uncertainties and assumptions, and are based on information
currently available to us. Actual results may differ materially
from those expressed in the forward-looking statements due to many
factors, including, without limitation, the risk associated with
the execution of our strategic operating plans in the near-term and
long-term; our extremely competitive industry; risks related to the
long-term nature of our fleet order book; volatility in fuel prices
and availability of fuel; increased maintenance costs associated
with fleet age; costs associated with salaries, wages and benefits;
risks associated with a potential material reduction in the rate of
interchange reimbursement fees; risks associated with doing
business internationally; our reliance on high daily aircraft
utilization; our dependence on the New York metropolitan market;
risks associated with extended interruptions or disruptions in
service at our focus cities; risks associated with airport
expenses; risks associated with seasonality and weather; our
reliance on a limited number of suppliers for our aircraft,
engines, and our Fly-Fi® product; risks related to new or increased
tariffs imposed on commercial aircraft and related parts imported
from outside the United States; the outcome of legal proceedings
with respect to the NEA and our wind-down of the NEA; risks
associated with cybersecurity and privacy, including information
security breaches; heightened regulatory requirements concerning
data security compliance; risks associated with reliance on, and
potential failure of, automated systems to operate our business;
our inability to attract and retain qualified crewmembers; our
being subject to potential unionization, work stoppages, slowdowns
or increased labor costs; reputational and business risk from an
accident or incident involving our aircraft; risks associated with
damage to our reputation and the JetBlue brand name; our
significant amount of fixed obligations and the ability to service
such obligations; our substantial indebtedness and impact on our
ability to meet future financing needs; financial risks associated
with credit card processors; risks associated with seeking
short-term additional financing liquidity; failure to realize the
full value of intangible or long-lived assets, causing us to record
impairments; risks associated with disease outbreaks or
environmental disasters affecting travel behavior; compliance with
environmental laws and regulations, which may cause us to incur
substantial costs; the impacts of federal budget constraints or
federally imposed furloughs; impact of global climate change and
legal, regulatory or market response to such change; increasing
attention to, and evolving expectations regarding, environmental,
social and governance matters; changes in government regulations in
our industry; acts of war or terrorism; and changes in global
economic conditions or an economic downturn leading to a continuing
or accelerated decrease in demand for air travel. It is routine for
our internal projections and expectations to change as the year or
each quarter in the year progresses, and therefore it should be
clearly understood that the internal projections, beliefs, and
assumptions upon which we base our expectations may change prior to
the end of each quarter or year.
Given the risks and uncertainties surrounding forward-looking
statements, you should not place undue reliance on these
statements. You should understand that many important factors, in
addition to those discussed or incorporated by reference in this
Report, could cause our results to differ materially from those
expressed in the forward-looking statements. Further information
concerning these and other factors is contained in JetBlue's
filings with the U.S. Securities and Exchange Commission (the
"SEC"), including but not limited to in our Annual Report on Form
10-K for the year ended December 31, 2023, as may be updated by our
other SEC filings. In light of these risks and uncertainties, the
forward-looking events discussed in this Report might not occur.
Our forward-looking statements speak only as of the date of this
Report. Other than as required by law, we undertake no obligation
to update or revise forward-looking statements, whether as a result
of new information, future events, or otherwise.
JETBLUE AIRWAYS
CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
(unaudited, in millions,
except per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(percent changes based on unrounded
numbers)
2024
2023
Percent Change
2024
2023
Percent Change
OPERATING REVENUES
Passenger
$
2,198
$
2,201
(0.1)
$
6,518
$
6,842
(4.7)
Other
167
152
9.8
484
448
8.2
Total operating revenues
2,365
2,353
0.5
7,002
7,290
(3.9)
OPERATING EXPENSES
Aircraft fuel
584
701
(16.8)
1,835
2,108
(12.9)
Salaries, wages and benefits
827
790
4.7
2,434
2,304
5.7
Landing fees and other rents
176
176
0.1
518
499
3.8
Depreciation and amortization
165
155
6.4
487
462
5.5
Aircraft rent
21
33
(37.0)
73
99
(26.2)
Sales and marketing
81
80
1.0
245
237
3.2
Maintenance, materials and repairs
160
168
(4.8)
442
512
(13.7)
Special items
27
33
(17.3)
590
168
NM (1)
Other operating expenses
362
373
(3.0)
1,078
1,064
1.4
Total operating expenses
2,403
2,509
(4.2)
7,702
7,453
3.4
OPERATING LOSS
(38
)
(156
)
(75.9)
(700
)
(163
)
NM
Operating margin
(1.6
)%
(6.6
)%
5.0
pts.
(10.0
)%
(2.2
)%
(7.8)
pts.
OTHER INCOME (EXPENSE)
Interest expense
(100
)
(53
)
89.0
(215
)
(145
)
47.7
Interest income
30
19
55.0
66
50
34.5
Capitalized interest
3
5
(32.3)
12
14
(17.2)
Gain (loss) on investments, net
(2
)
—
NM
(25
)
6
NM
Gain on debt extinguishments
22
—
NM
22
—
NM
Other
7
11
(41.8)
26
14
91.1
Total other expense
(40
)
(18
)
NM
(114
)
(61
)
(84.1)
LOSS BEFORE INCOME TAXES
(78
)
(174
)
(55.3)
(814
)
(224
)
NM
Pre-tax margin
(3.3
)%
(7.4
)%
4.1
pts.
(11.6
)%
(3.1
)%
(8.5)
pts.
Income tax benefit
18
21
(17.8)
63
17
NM
NET LOSS
$
(60
)
$
(153
)
(60.9)
$
(751
)
$
(207
)
NM
LOSS PER COMMON SHARE
Basic
$
(0.17
)
$
(0.46
)
$
(2.18
)
$
(0.63
)
Diluted
$
(0.17
)
$
(0.46
)
$
(2.18
)
$
(0.63
)
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic
346.9
333.3
344.0
331.0
Diluted
346.9
333.3
344.0
331.0
(1) Not meaningful or greater than 100%
change.
JETBLUE AIRWAYS
CORPORATION
COMPARATIVE OPERATING
STATISTICS
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(percent changes based on unrounded
numbers)
2024
2023
Percent Change
2024
2023
Percent Change
Revenue passengers (thousands)
10,596
10,911
(2.9)
30,556
32,309
(5.4)
Revenue passenger miles (RPMs)
(millions)
14,491
14,777
(1.9)
41,685
42,950
(2.9)
Available seat miles (ASMs) (millions)
16,740
17,362
(3.6)
49,940
51,484
(3.0)
Load factor
86.6
%
85.1
%
1.5
pts.
83.5
%
83.4
%
0.1
pts.
Aircraft utilization (hours per day)
(1)
10.2
10.7
(4.7)
10.2
10.9
(6.4)
Average fare
$
207.46
$
201.73
2.8
$
213.31
$
211.77
0.7
Yield per passenger mile (cents)
15.17
14.89
1.9
15.64
15.93
(1.8)
Passenger revenue per ASM (cents)
13.13
12.68
3.6
13.05
13.29
(1.8)
Operating revenue per ASM (cents)
14.13
13.55
4.3
14.02
14.16
(1.0)
Operating expense per ASM (cents)
14.35
14.45
(0.7)
15.42
14.48
6.5
Operating expense per ASM, excluding fuel
(cents) (2)
10.62
10.13
4.8
10.48
9.96
5.2
Departures
80,037
85,971
(6.9)
241,161
262,488
(8.1)
Average stage length (miles)
1,298
1,253
3.6
1,290
1,223
5.5
Average number of operating aircraft
during period
286
283
1.2
286
281
1.8
Average fuel cost per gallon
$
2.67
$
3.04
(12.2)
$
2.83
$
3.11
(9.0)
Fuel gallons consumed (millions)
219
230
(5.1)
647
677
(4.4)
Average number of full-time equivalent
crewmembers
19,788
20,661
(4.2)
20,036
20,706
(3.2)
(1) Includes aircraft temporarily removed
from service, including aircraft impacted by the Pratt &
Whitney engine groundings and lack of engine availability (2) Refer
to Note A at the end of our Earnings Release for more information
on this non-GAAP financial measure.
JETBLUE AIRWAYS
CORPORATION
SELECTED CONSOLIDATED BALANCE
SHEET DATA
(in millions)
September 30, 2024
December 31, 2023
(unaudited)
Cash and cash equivalents
$
2,594
$
1,166
Total investment securities
1,508
564
Total assets
16,627
13,853
Total debt
8,231
4,716
Stockholders' equity
2,644
3,337
Note A - Non-GAAP Financial Measures
We report our financial results in accordance with GAAP;
however, we present certain non-GAAP financial measures in this
Earnings Release. Non-GAAP financial measures are financial
measures that are derived from the condensed consolidated financial
statements, but that are not presented in accordance with GAAP. We
present these non-GAAP financial measures because we believe they
provide useful supplemental information that enables a meaningful
comparison of our results to others in the airline industry and our
prior year results. Investors should consider these non-GAAP
financial measures in addition to, and not as a substitute for, our
financial measures prepared in accordance with GAAP. Further, our
non-GAAP information may be different from the non-GAAP information
provided by other companies. The information below provides an
explanation of each non-GAAP financial measure used in this
Earnings Release and shows a reconciliation of each non-GAAP
financial measure used in this Earnings Release to the most
directly comparable GAAP financial measure.
With respect to JetBlue’s CASM Ex-Fuel (1) guidance and EBIT (2)
targets, JetBlue is not able to provide a reconciliation of
forward-looking measures where the quantification of certain
excluded items reflected in the measures cannot be calculated or
predicted at this time without unreasonable efforts. In these
cases, the reconciling information that is unavailable includes a
forward-looking range of financial performance measures beyond our
control, such as interest rates and fuel costs, which are subject
to many economic and political factors beyond our control. For the
same reasons, we are unable to address the probable significance of
the unavailable information, which could have a potentially
unpredictable and potentially significant impact on our future GAAP
financial results.
(1) CASM Ex-Fuel is a non-GAAP measure that excludes fuel, other
non-airline operating expenses, and special items. (2) EBIT is a
non-GAAP measure that excludes interest and income taxes from net
income (loss).
Operating expense per available seat mile, excluding fuel,
other non-airline operating expenses, and special items ("CASM
ex-fuel")
CASM is a common metric used in the airline industry. Our CASM
for the relevant periods are summarized in the table below. We
exclude aircraft fuel, operating expenses related to other
non-airline businesses, such as JetBlue Technology Ventures and
JetBlue Travel Products, and special items from total operating
expenses to determine Operating Expenses ex-fuel, which is a
non-GAAP financial measure, and we exclude the same items from CASM
to determine CASM ex-fuel, which is also a non-GAAP financial
measure. We believe the impact of these special items distorts our
overall trends and that our metrics are more comparable with the
presentation of our results excluding such impact.
We believe Operating Expenses ex-fuel and CASM ex-fuel are
useful for investors because they provide investors the ability to
measure our financial performance excluding items that are beyond
our control, such as fuel costs, which are subject to many economic
and political factors, as well as items that are not related to the
generation of an available seat mile, such as operating expense
related to certain non-airline businesses and special items. We
believe these non-GAAP measures are more indicative of our ability
to manage airline costs and are more comparable to measures
reported by other major airlines.
For the three months ended September 30, 2024, special items
included union contract costs and voluntary opt-out costs. For the
nine months ended September 30, 2024, special items included
Spirit-related costs, union contract costs, voluntary opt-out
costs, and Embraer E190 fleet transition costs.
For the three and nine months ended September 30, 2023, special
items included Spirit-related costs and union contract costs.
The table below provides a reconciliation of our total operating
expenses (GAAP measure) to Operating Expenses ex-fuel, and our CASM
to CASM ex-fuel for the periods presented.
NON-GAAP FINANCIAL
MEASURE
RECONCILIATION OF OPERATING
EXPENSE AND OPERATING EXPENSE PER ASM (CASM), EXCLUDING
FUEL
(unaudited)
Three Months Ended September
30,
$
Cents per ASM
($ in millions; per ASM data in cents;
percent changes based on unrounded numbers)
2024
2023
Percent Change
2024
2023
Percent Change
Total operating expenses
$
2,403
$
2,509
(4.2)
14.35
14.45
(0.7)
Less:
Aircraft fuel
584
701
(16.8)
3.49
4.04
(13.7)
Other non-airline expenses
14
16
(10.7)
0.08
0.09
(7.4)
Special items
27
33
(17.3)
0.16
0.19
(14.3)
Operating expenses, excluding
fuel
$
1,778
$
1,759
1.1
10.62
10.13
4.8
Nine Months Ended September
30,
$
Cents per ASM
($ in millions; per ASM data in cents;
percent changes based on unrounded numbers)
2024
2023
Percent Change
2024
2023
Percent Change
Total operating expenses
$
7,702
$
7,453
3.4
15.42
14.48
6.5
Less:
Aircraft fuel
1,835
2,108
(12.9)
3.67
4.09
(10.3)
Other non-airline expenses
46
49
(5.7)
0.09
0.09
(2.8)
Special items
590
168
NM (1)
1.18
0.33
NM
Operating expenses, excluding
fuel
$
5,231
$
5,128
2.0
10.48
9.96
5.2
(1) Not meaningful or greater than 100%
change.
Operating Expense, Operating Loss, Adjusted Operating Margin,
Pre-tax Loss, Adjusted Pre-tax Margin, Net Loss and Loss per Share,
excluding Special Items, Gain (Loss) on Investments and Gain on
Debt Extinguishments
Our GAAP results in the applicable periods were impacted by
credits and charges that were deemed special items.
For the three months ended September 30, 2024, special items
included union contract costs and voluntary opt-out costs. For the
nine months ended September 30, 2024, special items included
Spirit-related costs, union contract costs, voluntary opt-out
costs, and Embraer E190 fleet transition costs.
For the three and nine months ended September 30, 2023 special
items included Spirit-related costs and union contract costs.
Certain net gains and losses on our investments and the gain on
debt extinguishments were also excluded from our September 30, 2024
and 2023 non-GAAP results.
We believe the impact of these items distort our overall trends
and that our metrics are more comparable with the presentation of
our results excluding the impact of these items. The table below
provides a reconciliation of our GAAP reported amounts to the
non-GAAP amounts excluding the impact of these items for the
periods presented.
NON-GAAP FINANCIAL
MEASURE
RECONCILIATION OF OPERATING
EXPENSE, OPERATING LOSS, ADJUSTED OPERATING MARGIN, PRE-TAX LOSS,
ADJUSTED PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING
SPECIAL ITEMS, GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT
EXTINGUISHMENTS
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
(in millions except percentages)
2024
2023
2024
2023
Total operating revenues
$
2,365
$
2,353
$
7,002
$
7,290
RECONCILIATION OF OPERATING
EXPENSE
Total operating expenses
$
2,403
$
2,509
$
7,702
$
7,453
Less: Special items
27
33
$
590
$
168
Total operating expenses excluding special
items
$
2,376
$
2,476
$
7,112
$
7,285
Percent change
(4.1
)%
(2.4
)%
RECONCILIATION OF OPERATING
LOSS
Operating loss
$
(38
)
$
(156
)
$
(700
)
$
(163
)
Add back: Special items
27
33
590
168
Operating income (loss) excluding special
items
$
(11
)
$
(123
)
$
(110
)
$
5
RECONCILIATION OF ADJUSTED OPERATING
MARGIN
Operating margin
(1.6
)%
(6.6
)%
(10.0
)%
(2.2
)%
Operating income (loss) excluding special
items
$
(11
)
$
(123
)
$
(110
)
$
5
Total operating revenues
2,365
2,353
7,002
7,290
Adjusted operating margin
(0.4
)%
(5.2
)%
(1.6
)%
0.1
%
RECONCILIATION OF PRE-TAX LOSS
Loss before income taxes
$
(78
)
$
(174
)
$
(814
)
$
(224
)
Add back: Special items
27
33
590
168
Less: Gain (loss) on investments, net
(2
)
—
(25
)
6
Less: Gain on debt extinguishments
22
—
22
—
Loss before income taxes excluding special
items, gain (loss) on investments and gain on debt
extinguishments
$
(71
)
$
(141
)
$
(221
)
$
(62
)
RECONCILIATION OF ADJUSTED PRE-TAX
MARGIN
Pre-tax margin
(3.3
)%
(7.4
)%
(11.6
)%
(3.1
)%
Loss before income taxes excluding special
items
$
(71
)
$
(141
)
$
(221
)
$
(62
)
Total operating revenues
2,365
2,353
7,002
7,290
Adjusted pre-tax margin
(3.0
)%
(6.0
)%
(3.2
)%
(0.9
)%
RECONCILIATION OF NET LOSS
Net loss
$
(60
)
$
(153
)
$
(751
)
$
(207
)
Add back: Special items
27
33
590
168
Less: Income tax benefit related to
special items
6
9
14
30
Less: Gain (loss) on investments, net
(2
)
—
(25
)
6
Less: Income tax benefit (expense) related
to gain (loss) on investments, net
—
—
6
(1
)
Less: Gain on debt extinguishments
22
—
22
—
Less: Income tax expense related to gain
on debt extinguishments
(5
)
—
(5
)
—
Net loss excluding special items, gain
(loss) on investments and gain on debt extinguishments
$
(54
)
$
(129
)
$
(173
)
$
(74
)
NON-GAAP FINANCIAL
MEASURE
RECONCILIATION OF OPERATING
EXPENSE, OPERATING LOSS, ADJUSTED OPERATING MARGIN, PRE-TAX LOSS,
ADJUSTED PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING
SPECIAL ITEMS, GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT
EXTINGUISHMENTS (CONTINUED)
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
CALCULATION OF LOSS PER SHARE
2024
2023
2024
2023
Loss per common share
Basic
$
(0.17
)
$
(0.46
)
$
(2.18
)
$
(0.63
)
Add back: Special items
0.07
0.10
1.72
0.51
Less: Income tax benefit related to
special items
0.02
0.03
0.04
0.08
Less: Gain (loss) on investments, net
(0.01
)
—
(0.07
)
0.02
Less: Income tax benefit related to gain
(loss) on investments, net
—
—
0.02
—
Less: Gain on debt extinguishments
0.06
—
0.06
—
Less: Income tax expense related to gain
on debt extinguishments
(0.01
)
—
(0.01
)
—
Basic excluding special items, gain (loss)
on investments and gain on debt extinguishments
$
(0.16
)
$
(0.39
)
$
(0.50
)
$
(0.22
)
Diluted
$
(0.17
)
$
(0.46
)
$
(2.18
)
$
(0.63
)
Add back: Special items
0.07
0.10
1.72
0.51
Less: Income tax benefit related to
special items
0.02
0.03
0.04
0.08
Less: Gain (loss) on investments, net
(0.01
)
—
(0.07
)
0.02
Less: Income tax benefit related to gain
(loss) on investments, net
—
—
0.02
—
Less: Gain on debt extinguishments
0.06
—
0.06
—
Less: Income tax expense related to gain
on debt extinguishments
(0.01
)
—
(0.01
)
—
Diluted excluding special items, gain
(loss) on investments and gain on debt extinguishments
$
(0.16
)
$
(0.39
)
$
(0.50
)
$
(0.22
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241029557401/en/
JetBlue Investor Relations Tel: +1 718 709 2202
ir@jetblue.com JetBlue Corporate Communications Tel: +1 718
709 3089 corpcomm@jetblue.com
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