JetBlue Releases Strong Financial Results

A JetBlue Airbus A321 approaching to land.
Fletcher, CC BY 4.0 , via Wikimedia Commons

LONDON – This week, JetBlue divulged its financial results for the fourth quarter of 2022.

The team at JetBlue did an excellent job to finish the year with a strong fourth-quarter performance, leading to the highest revenue result in our history.

Its cost execution was also strong and on track, allowing them to hit our target. With this foundation in place, CEO Robin Hayes is confident that we will continue to build upon our success in 2023.

They anticipate the business will accelerate in 2023 with profitable revenue growth during the entirety of the year.

The Numbers…

Photo Credit: Joris Wendt/AviationSource

Their planned commercial activities and cost-consciousness should result in margins nearing pre-pandemic levels as we move into the future, allowing us to generate sustainable long-term profits and bring value to our stakeholders.

Earnings have increased by 4%, compared to the same period last year, and are pleased with these results.

Net income for the fourth quarter of 2022, in accordance with Generally Accepted Accounting Principles (GAAP), was $24 million, or $0.07 per share.

Stripping out one-off items yields adjusted net income for the same period at $72 million(1) or $0.22 per share.

Capacity in the fourth quarter of 2022 showed a 2.4% growth compared to that of the fourth quarter three years prior.

For the fourth quarter of 2022, operating revenue rose to a record-setting $2.4 billion – the highest in the company’s history.

In the fourth quarter of 2022, RASM saw a 16.1% surge compared to the same period in 2019, with Hurricane Nicole having a detrimental effect on the outcome.

In Q4 2022, CASM went up 28.4% year-on-year from the same period in 2019.

Operating expenses per available seat mile, excluding fuel costs and other non-airline operating expenses (CASM ex-Fuel)(1), increased by 9.9%(1) in the fourth quarter of 2022 as compared to the fourth quarter of 2019, resulting in an excellent performance.

In the fourth quarter of 2022, fuel prices are projected to be $3.70 per gallon after hedging processes take place.

At quarter-end, JetBlue had a total of $1.6 billion in unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities (not including the $600 million unutilized revolving line of credit).

At the end of December 2022, the adjusted debt-to-capital ratio stood at 52%.

JetBlue disbursed around $114 million to pay off our debt and finance lease obligations in the fourth quarter of 2022.

JetBlue’s Return to Profitability…

Photo Credit: Joris Wendt/AviationSource

The second half of 2022 saw a return to profitability with record levels of income growth, and low costs were rigorously maintained.

The fourth quarter saw a superb performance, boasting an industry-leading completion rate of 98.2% in December.

This impressive result was achieved in spite of the disruption caused by Hurricane Nicole and Winter Storm Elliott.

The Northeast Alliance (NEA) is increasing offerings in New York and Boston to support more communities with low fares and superior service while also adding competition across the region.

The airline has also increased its transatlantic franchise to five daily flights between the Northeast and London, as well as introduced service to Paris.

Expansion & Sustainability…

Photo Credit: Joris Wendt/AviationSource

As another highlight, JetBlue became the main tenant in Orlando International Airport’s freshly-built Terminal C, transferred operations at LaGuardia Airport to the modern, state-of-the-art Terminal B, and reached an agreement to take a minority stake in John F. Kennedy International Airport’s Terminal 6.

The TrueBlue® loyalty program has been launched, providing customers with a plethora of advantageous benefits.

JetBlue claims they have been leading the industry in sustainability, and our emissions reduction target is validated with science.

Its plan would reduce our per-seat emissions by half by 2035 compared to 2019 levels.

We have also partnered with Fidelis New Energy to provide 92 million gallons of SAF over a five-year period, beginning in 2025, which brings us closer to our goal of using 10% SAF for jet fuel by 2030.

“The Points Guy” awarded an Editors’ Choice for Best Economy Class to this carrier, and “Business Traveler USA” honored it with a Best Budget Airline designation.

Positive Outlook Ahead…

Adam Moreira (AEMoreira042281), CC BY-SA 4.0, via Wikimedia Commons

The outlook is looking positive. The future looks promising, and the opportunities are plentiful. We should be optimistic about the prospects and expect a successful outcome.

At the start of 2023, Joanna Geraghty, JetBlue’s President and Chief Operating Officer declared her satisfaction with the ongoing strength of market demand, even as the year’s traditionally slow period gets underway.

“As we kick off 2023, we’re pleased to see the demand environment remain solid into the seasonal trough period of the year,”

“We’re excited to continue building on last year’s record performance as we look at another strong year of revenue growth, underpinned by multiple networks and commercial initiatives, including strong earnings accretion from the NEA as our markets mature.”

“We also continue to make progress on our multi-year path to grow our loyalty revenue stream as a percentage of our total revenue base and close the gap to best-in-class loyalty performance.”

By James Field - Editor in Chief 7 Min Read
7 Min Read
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