JetBlue Airways Announces Positive Q2 2024 Results

DALLAS — JetBlue Airways (B6) has reported significant year-over-year (YOY) improvements in operations, exceeding its second-quarter guidance, bringing positive momentum for the airline. Joanna Geraghty, the CEO of B6, attributed the positive shift to the airlines’ refocused strategy and looks forward to extending the yield through their comprehensive JetForward strategic framework.

"Today, and as the year progresses, we are excited to share more details about JetForward, our strategic framework to return JetBlue to sustained profitability, and the four priority moves aimed at driving significant value over the coming years,” said Joanna Geraghty, the CEO of B6.

JetForward: the Four Priority Moves

The airlines’ strategic framework, JetForward, includes four priority moves aimed at generating US$800-900 million of incremental EBIT from 2025 through 2027, and expect the benefit to be realized evenly over those years.

The four priority moves are:

1. Reliable and Caring service: B6 aims to deliver outstanding customer service throughout the journey and improve on-time performance through various approaches, including investments in tools and technology.
2. Best East Coast Leisure Network: The airline plans to refocus the network around leisure flying originating in New York, New England, Florida, and Latin geographies. New routes to Manchester, New Hampshire, were recently added. However, 15 stations and 50+ routes were recently closed to reduce unprofitable flying.
3. Products & Perks Customers Value: By enhancing product offerings and loyalty perks, B6 aims to attract customers who value high-quality and premium experiences. A complimentary carry-on bag was recently added to Blue Basic fare to optimize product merchandising.
4. A Secure Financial Future: A total of $175 million is forecasted in savings through 2027 with the new business cost transformation program.

With the focus on maintaining a healthy balance sheet and securing a financial future, an incremental aircraft deferral of 44 A321neo aircraft from 2025 – 2029 to 2030+ has been announced, totaling approximately US$3 billion of capex savings.

Q2 2024 Key Highlights, 2024 Outlook

The net income for the second quarter of 2024 under Generally Accepted Accounting Principles ("GAAP") totaled US$25 million, or US$0.07 earnings per share. However, the adjusted net income, excluding special items, was US$26 million, or US$0.08 earnings per share.

The operating revenue for Q2 2024 is US$2.4 billion, down 6.9% year over year. However, the operating expenses remained steady at $2.4 billion, decreasing by 0.1% year over year. System capacity was reduced by 2.7% year over year, while cost per available seat mile (CASM)increased by 2.6% year over year. 

Operating expenses, excluding special items, increased 0.9% year over year in the second quarter of 2024. Furthermore, operating expenses per available seat mile, excluding fuel, other non-airline operating expenses, and special items (CASM ex-Fuel), increased by 3.7% year over year.

The key highlights in the second quarter of 2024 include:

1. Improved operational performance YOY with a 98.8% completion factor, up from 97.8% in 2Q23.
2. Achieved approximately US$140 million incremental top-line benefit year-to-date towards a US$300 million 2024 revenue target.
3. Realized approximately US$145 million in structural cost program savings and US$83 million in fleet modernization cost avoidance.
4. Ended the quarter with ~US$1.6 billion in liquidity, excluding our undrawn US$600 million revolving credit facility.

JetBlue remains focused on achieving its near-term financial goals with its current strategy. The airline anticipates continued unit revenue momentum supported by revenue initiatives and normalization of competitive capacity in key geographies.

The outlook for the third quarter and full year 2024 indicates some challenges for the company. Available Seat Miles (ASMs) are expected to decrease by 6.0% to 3.0% in Q3 and 5.0% to 2.5% for the full year compared to the previous year. Revenue will decline by 5.5% to 1.5% in Q3 and 6.0% to 4.0% for the full year. Cost per Available Seat Mile (CASM), excluding fuel, is anticipated to increase by 6.0% to 8.0% in Q3 and 6.5% to 8.5% for the full year. 

Fuel prices are estimated to range from $2.82 to $2.97 per gallon in Q3 and $2.80 to $3.00 for the full year. Capital expenditures are expected to be around $365 million for Q3 and approximately $1.6 billion for the full year 2024. 

The airline is confident in achieving better financial health with the JetForward strategy and looks forward to positive developments in the second half of 2024. "We remain committed to cost execution in the second half of the year, when we expect our structural cost program to ramp up to run-rate and we will introduce our new cost transformation program as part of JetForward," said Ursula Hurley, JetBlue CFO.