JetBlue Airways’ (JBLU – Free Report) first-quarter 2024 loss (excluding $1.68 from non-recurring items) of 43 cents per share was narrower than the Zacks Consensus Estimate of a loss of 53 cents. In the year-ago quarter, JBLU reported a loss of 34 cents.
Operating revenues of $2.21 billion edged past the Zacks Consensus Estimate of $2.2 billion. However, the top line decreased 5.11% year over year.
Passenger revenues, accounting for the bulk of the top line (93.03%), declined to $2.06 billion from $2.18 billion a year ago. Passenger revenues were hurt due to air traffic control issues in the Northeast. The metric was just ahead of our projection of $2.02 billion. Other revenues rose 5.5% to $154 million, ahead of our estimate of $151.7 million.
Other Q1 Details
All comparisons have been presented on a year-over-year basis unless mentioned otherwise.
Revenue per available seat mile (RASM: a key measure of unit revenues) declined 2.5% to 13.54 cents. Passenger revenue per available seat mile fell 3.2% to 12.60 cents. The average fare at JetBlue increased 0.1% to $214.39. The yield per passenger mile dipped 3.1%.
Consolidated traffic (measured in revenue passenger miles) declined 2.8%. Capacity (measured in available seat miles) dropped 2.7%. Consolidated load factor (percentage of seats filled by passengers) contracted 10 basis points to 79.7% as the traffic decline was more than the capacity reduction. The actual value of the load factor was less than our projection of 81.6%.
Total operating costs (on a reported basis) edged up 14% to $2.93 billion, mainly due to an 11% gain in expenses on salaries, wages and benefits. The average fuel price per gallon (including related taxes) was $2.97, down 17.3% year over year. JBLU’s operating expenses per available seat mile (CASM) increased 17.1% year over year. Excluding fuel, CASM rose 7.1% to $10.57 cents.
JetBlue, currently carrying a Zacks Rank #3 (Hold), exited the quarter with cash and cash equivalents of $1.24 billion compared with $1.16 billion at the end of 2023. Total debt at the end of the March quarter was $5.01 billion compared with $4.72 billion in 2023. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bleak Outlook
While providing guidance for the second quarter of 2024, management stated that all comparisons had been made with respect to the second-quarter 2023 figures.
Capacity is anticipated to decline in the 2-5% band. CASM, excluding fuel and special items, is predicted to climb 5.5-7.5%. Capital expenditures are expected to be roughly $550 million. Total revenues are forecast to tumble in the range of 6.5-10.5%. The average fuel cost per gallon is estimated between $2.98 and $3.13.
For the full-year 2024, capacity is envisioned to be down in the low single digits (percentage-wise) from the 2023 actuals. CASM, excluding fuel and special items, is predicted to be up in the mid-to-high-single-digit range (percentage-wise) from the 2023 figures.
Total revenues for the second quarter of 2024 are anticipated to be down in the low single digits from the 2023 levels (earlier outlook projected 2024 revenues to be flat from the 2023 levels).The downbeat guidance was due to the elevated capacity of JBLU in its Latin American markets. Capital expenditures are expected to be roughly $1.6 billion in the current year.
Q1 Performances of Some Other Transportation Companies
Delta Air Lines’ (DAL – Free Report) first-quarter 2024 earnings (excluding 39 cents from non-recurring items) of 45 cents per share comfortably beat the Zacks Consensus Estimate of $0.36 and improved 7.75% year over year.
Revenues of $13.75billion surpassed the Zacks Consensus Estimate of $12.84 billion and increased 7.75% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) came in at $12.6 billion, up 6% year over year.
United Airlines (UAL – Free Report) reported a first-quarter 2024 loss (excluding 23 cents from non-recurring items) of 15 cents per share, narrower than the Zacks Consensus Estimate of 53 cents and improved 76.19% year over year.
Operating revenues of $12.54 billion beat the Zacks Consensus Estimate of $12.43 billion. The top line increased 9.71% year over year due to upbeat air travel demand. Cargo revenues fell 1.8% year over year to $391 million. Revenues from other sources jumped 10.3% year over year to $835 million.
J.B. Hunt Transport Services’ (JBHT – Free Report) first-quarter 2024 earnings per share of $1.22 missed the Zacks Consensus Estimate of $1.53 and declined 35.45% year over year.
Total operating revenues of $2.94 billion lagged the Zacks Consensus Estimate of $3.12 billion and fell 9% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6.5% year over year.
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